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<SEC-DOCUMENT>0000930413-06-003639.txt : 20060509
<SEC-HEADER>0000930413-06-003639.hdr.sgml : 20060509
<ACCEPTANCE-DATETIME>20060509115523
ACCESSION NUMBER:		0000930413-06-003639
CONFORMED SUBMISSION TYPE:	N-CSRS
PUBLIC DOCUMENT COUNT:		7
CONFORMED PERIOD OF REPORT:	20060228
FILED AS OF DATE:		20060509
DATE AS OF CHANGE:		20060509
EFFECTIVENESS DATE:		20060509

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:		06819434

	BUSINESS ADDRESS:	
		STREET 1:		100 BELLEVUE PARKWAY
		STREET 2:		MUTUAL FUND DEPARTMENT
		CITY:			WILMINGTON
		STATE:			DE
		ZIP:			19809
		BUSINESS PHONE:		888-825-2257

	MAIL ADDRESS:	
		STREET 1:		100 BELLEVUE PARKWAY
		STREET 2:		MUTUAL FUND DEPARTMENT
		CITY:			WILMINGTON
		STATE:			DE
		ZIP:			19809
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-CSRS
<SEQUENCE>1
<FILENAME>c42525_n-csrs.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor="#ffffff">

<center>
  <FONT face="serif">UNITED STATES</FONT><BR>
  <FONT face="serif">SECURITIES AND EXCHANGE COMMISSION</FONT><BR>
  <FONT face="serif">Washington, D.C. 20549<br>
  </FONT><BR>
  <B><FONT size=4 face="serif">FORM N-CSR</FONT></B><br>
  <BR>
  <B><FONT face="serif">CERTIFIED SHAREHOLDER REPORT OF REGISTERED</FONT></B><BR>
  <B><FONT face="serif">MANAGEMENT INVESTMENT COMPANIES<br>
  </FONT></B><BR>
<FONT face="serif">Investment Company Act file number:

<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;


811-21126


&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><BR><br>
  <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;


BlackRock Municipal Income Trust II



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></FONT><u><BR>
  </u><FONT face="serif">(Exact name of registrant as specified in charter) </FONT><BR>
</center>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=center>
      <center><br>
        <FONT face="serif">100 Bellevue Parkway, Wilmington, DE</FONT>&nbsp;
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <FONT face="serif">19809</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=3>
<HR align="center" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <center>
        <FONT face="serif">(Address of principal executive offices)</FONT>&nbsp;
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <FONT face="serif">(Zip code)</FONT>&nbsp;
      </center></TD>
</TR>
</TABLE>
<center>
  <p><BR>
      <FONT face="serif"> Robert S. Kapito, President</FONT><BR>
      <FONT face="serif"> </FONT><FONT face="sans-serif">


BlackRock Municipal Income Trust II



</FONT><BR>
  <FONT face="serif"> 40 East 52nd Street, New York, NY 10022</FONT>
  <hr size="1" noshade>
  <FONT face="serif">(Name and address of agent for service)</FONT>
  <p align="left">
  <FONT face="serif">Registrant's telephone number, including area code: </FONT><U><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;888-825-2257&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></U>    </p>
</center>
<P>
<FONT face="serif">Date of fiscal year end:</FONT><U><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;August
31, 2006&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></U></P>
<P>
<FONT face="serif">Date of reporting period:</FONT><U><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;February
28, 2006&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></U></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">Item 1. Reports to Stockholders.</FONT></B><FONT face="serif"> </FONT></P>
<P>
<FONT face="serif">The Registrant&#146;s semi-annual report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows: </FONT></P>
<BR><BR><BR>

<P>
<FONT size=1 face="sans-serif">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>
<hr align="left" width="525" size=1 noshade>
<FONT size=5 face="sans-serif"><br>
BlackRock</FONT><BR>
<FONT size=5 face="sans-serif">Closed-End Funds</FONT><BR>
<FONT size=5 face="sans-serif">Semi-Annual Report</FONT><br>
<BR>
<FONT size=2 face="sans-serif">FEBRUARY 28, 2006 (UNAUDITED)</FONT>
<br>
<br>
<hr align="left" width="525" size=6 noshade>
<BR>
<FONT size=2 face="sans-serif">BlackRock Insured Municipal Income Trust (BYM)</FONT><br>
<BR>
<FONT size=2 face="sans-serif">BlackRock Municipal Bond Trust (BBK)</FONT><br>
<BR>
<FONT size=2 face="sans-serif">BlackRock Municipal Income Trust II (BLE)</FONT><br>
<BR>
<FONT size=2 face="sans-serif">BlackRock California Insured Municipal Income Trust (BCK)</FONT><br>
<BR>
<FONT size=2 face="sans-serif">BlackRock California Municipal Bond Trust (BZA)</FONT><br>
<BR>
<FONT size=2 face="sans-serif">BlackRock California Municipal Income Trust II (BCL)<br>
</FONT><BR>
<FONT size=2 face="sans-serif">BlackRock Florida Insured Municipal Income Trust (BAF)</FONT><br>
<BR>
<FONT size=2 face="sans-serif">BlackRock Florida Municipal Bond Trust (BIE)</FONT><br>
<BR>
<FONT size=2 face="sans-serif">BlackRock Maryland Municipal Bond Trust (BZM)</FONT><br>
<BR>
<FONT size=2 face="sans-serif">BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT><br>
<BR>
<FONT size=2 face="sans-serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT><br>
<BR>
<FONT size=2 face="sans-serif">BlackRock New York Municipal Bond Trust (BQH)</FONT><br>
<BR>
<FONT size=2 face="sans-serif">BlackRock New York Municipal Income Trust II (BFY)</FONT><br>
<BR>
<FONT size=2 face="sans-serif">BlackRock Virginia Municipal Bond Trust (BHV)</FONT><br>
<BR>
<hr align="left" width="525" size=1 noshade>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>
  <BR>
</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="bottom"> <FONT size=1 face="sans-serif">NOT FDIC INSURED <br>
MAY LOSE VALUE <br>
NO BANK GUARANTEE</FONT></td>
    <td><div align="right"><img src="c41499_n-csrsx1x1.jpg" border=0></div></td>
  </tr>
</table>
<p>&nbsp;</p>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT face="serif">TABLE OF CONTENTS</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Letter to Shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">1</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Trusts&#146; Summaries</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">2</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Portfolios of Investments</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">16</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Financial Statements</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"> &nbsp; &nbsp; &nbsp;<FONT face="serif">Statements of Assets and Liabilities</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">47</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT face="serif">Statements of Operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">50</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"> &nbsp; &nbsp; &nbsp;<FONT face="serif">Statements of Changes in Net Assets</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">53</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Financial Highlights</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">59</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Notes to Financial Statements</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">73</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Dividend Reinvestment Plans</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">78</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Additional Information</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">78</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>

<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<div style="border:1px solid #000000; padding:5px">
<P align="center">&nbsp;</P>
<P align="center"><B><FONT size=2 face="serif">Privacy Principles of the Trusts</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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></P>
<P>&nbsp;</P>
</div>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT face="serif">LETTER TO SHAREHOLDERS</FONT></B></P>
<P align="right">
<FONT size=2 face="serif">February 28, 2006</FONT></P>
<P><FONT size=2 face="serif"> Dear Shareholder: </FONT></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We are pleased to report that
      during the semi-annual period, the Trusts provided 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>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 28,
2006.</FONT></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <center>
        <B><FONT size=2 face="serif">Tax-</FONT></B>
            </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Closing</FONT></B>&nbsp;
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD colspan=2 align=left>
      <center>
        <B><FONT size=2 face="serif">Current </FONT></B>&nbsp;
            </center></TD>
        <TD colspan=2 align=left><center>
          <B><FONT size=2 face="serif">Equivalent</FONT></B>
    </center></TD>
        <TD align=left><center>
          <B><FONT size=2 face="serif">Market</FONT></B>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Trust (Ticker)</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Yield</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Yield</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Price</FONT></B>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">NAV</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (BYM)</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.91</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;14.23</FONT>&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;15.51</FONT>&nbsp;&nbsp;&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock Municipal Bond Trust (BBK)</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.04</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9.30</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=2 face="serif">17.15</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">16.37</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE)</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.02</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9.26</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=2 face="serif">16.69</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">15.71</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock California Insured Municipal Income Trust (BCK)</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4.90</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.54</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=2 face="serif">14.20</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">15.28</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock California Municipal Bond Trust (BZA)</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.77</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.88</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=2 face="serif">16.56</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">16.20</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock California Municipal Income Trust II (BCL)</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.31</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=2 face="serif">14.81</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">15.63</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock Florida Insured Municipal Income Trust (BAF)</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.69</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=2 face="serif">13.91</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">15.19</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock Florida Municipal Bond Trust (BIE)</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.52</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.34</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=2 face="serif">16.90</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">16.25</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock Maryland Municipal Bond Trust (BZM)</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4.98</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.35</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=2 face="serif">17.20</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">16.06</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.61</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.63</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=2 face="serif">16.82</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">16.29</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4.89</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.52</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=2 face="serif">14.23</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">15.35</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock New York Municipal Bond Trust (BQH)</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.55</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.53</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=2 face="serif">16.68</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">16.08</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock New York Municipal Income Trust II (BFY)</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4.95</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.61</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=2 face="serif">14.37</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">15.41</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock Virginia Municipal Bond Trust (BHV)</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4.90</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.54</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=2 face="serif">17.73</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">16.35</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<hr size="1" noshade>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yields are based on closing market price. Tax-equivalent yield assumes the maximum Federal tax rate of 35%. Past performance does not guarantee future results.</FONT>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">BlackRock, Inc. (&#147;BlackRock&#148;), a world leader in asset management, has a proven commitment to the municipal bond market. As of December 31, 2005, BlackRock and its affiliates managed
over &#36;25 billion in municipal bonds, including seven open-end and 38 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., and its affiliate, BlackRock Financial Management, Inc., which manage the Trusts, are wholly owned subsidiaries of BlackRock.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<P>
<FONT size=2 face="serif">Sincerely,</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td width="51%"><IMG src="c41499_n-csrsx3x1.jpg" border=0> <BR>
      <FONT size=2 face="serif">Laurence D. Fink</FONT><BR>
      <FONT size=2 face="serif">Chief Executive Officer</FONT><BR>
      <FONT size=2 face="serif">BlackRock Advisors, Inc.</FONT></td>
    <td width="49%"><P align="left"> <IMG src="c41499_n-csrsx3x2.jpg" width="133" height="70" border=0><br>
      <FONT size=2 face="serif">Ralph L. Schlosstein</FONT><BR>
        <FONT size=2 face="serif">President</FONT><BR>
        <FONT size=2 face="serif">BlackRock Advisors, Inc.</FONT></P>    </td>
  </tr>
</table>
<BR>
<BR>
<P align="center">
<FONT size=2 face="serif">1</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (BYM)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B><BR>
</P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=76% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">BYM</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="14%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">October 31, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;14.23</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;15.51</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/06 (&#36;14.23):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.061</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.732</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<p><SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT></p>
<p><SUP><FONT size=1 face="serif">2
    </FONT></SUP><FONT size=1 face="serif">This distribution is not constant and is subject to change. Past performance does not guarantee future results.</FONT>
</p>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=left><HR noshade size=1></TD>
  <TD align=right><HR noshade size=1></TD>
  <TD align=center><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/06</FONT></B>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>&nbsp;
            </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
            </center>

          <center>
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
            </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
            </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.23</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.43</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">(7.78</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.79</FONT>&nbsp;
            </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;13.03</FONT>&nbsp;
            </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.51</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.61</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">(0.64</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.61</FONT>&nbsp;
            </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;14.96</FONT>&nbsp;
            </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments:</FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="13%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">28</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">28</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Resource Recovery</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">5</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="13%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">92</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">87</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BB/Ba</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">A category
may contain multiple industries as defined by the SEC&#146;s Standard Industry
Codes.</FONT>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">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 align="center">
<FONT size=2 face="serif">2</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><br>
<BR>
<B><FONT size=2 face="serif">BlackRock Municipal Bond Trust (BBK)</FONT></B><BR>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=79% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">BBK</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="13%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">April 30, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;17.15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;16.37</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/06 (&#36;17.15):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.04</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.086375</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;1.036500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">35</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change. Past performance does not guarantee future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=right><hr size="1" noshade>    </TD>
  <TD align=right><hr size="1" noshade></TD>
  <TD colspan="2" align=right><hr size="1" noshade></TD>
  <TD align=right><hr size="1" noshade></TD>
  <TD align=center><hr size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/06</FONT></B>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>&nbsp;
            </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
            </center></TD>
        <TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;17.15</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;17.18</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">(0.17</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;17.38</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;15.17</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.37</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.36</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">0.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.37</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;15.72</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">20</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">19</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">18</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">5</FONT></SUP></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">35</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">19</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">26</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BB/Ba</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">B</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Not Rated</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">A category
may contain multiple industries as defined by the SEC&#146;s Standard Industry
Codes.</FONT>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P align="center">
<FONT size=2 face="serif">3</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=80% align=left>
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">BLE</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">July 30, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;16.69</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;15.71</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/06 (&#36;16.69):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.08375</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;1.00500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<p><SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.</FONT></p>
<p><SUP><FONT size=1 face="serif">2
      </FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change. Past performance does not guarantee future results.</FONT>
</p>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=right><hr size="1" noshade>    </TD>
  <TD align=right><hr size="1" noshade></TD>
  <TD colspan="2" align=right><hr size="1" noshade></TD>
  <TD align=right><hr size="1" noshade></TD>
  <TD align=center><hr size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/06</FONT></B>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>&nbsp;
            </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
            </center></TD>
        <TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.69</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.73</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">6.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.82</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;15.00</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.71</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.75</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">(0.25</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.75</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;15.11</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">22</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">22</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">5</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">30</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">30</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">25</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">23</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BB/Ba</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">B</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">CCC/Caa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">A category
may contain multiple industries as defined by the SEC&#146;s Standard Industry
Codes.</FONT>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2006 and August 31, 2005, the market value of these
securities was &#36;16,077,892 representing 3.1% and &#36;13,031,133 representing 2.3%, respectively, of the Trust&#146;s long-term investments. </FONT></P>
<P align="center">
<FONT size=2 face="serif">4</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock California Insured Municipal Income Trust (BCK)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=76% align=left>
<FONT size=2 face="serif">Symbol on the New York Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">BCK</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="14%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">October 31, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;14.20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;15.28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/06 (&#36;14.20):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.058</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.696</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">37</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change. Past performance does not guarantee future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=right><hr size="1" noshade>    </TD>
  <TD align=right><hr size="1" noshade>    </TD>
  <TD colspan="2" align=right><hr size="1" noshade>    </TD>
  <TD align=right><hr size="1" noshade>    </TD>
  <TD align=center><hr size="1" noshade>    </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/06</FONT></B>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>&nbsp;
            </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
            </center></TD>
        <TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.20</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.08</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">(11.69</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.28</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;13.04</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.28</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.22</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">0.39</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.28</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;14.54</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=37% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="18%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="14%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">31</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">29</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">33</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">5</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=37% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="18%">
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="14%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">98</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">92</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">A category
may contain multiple industries as defined by the SEC&#146;s Standard Industry
Codes.</FONT>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P align="center">
<FONT size=2 face="serif">5</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock California Municipal Bond Trust (BZA)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=79% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">BZA</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="13%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">April 30, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;16.56</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;16.20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/06 (&#36;16.56):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.77</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.079656</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.955872</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.</FONT>
<P>
<SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change. Past performance does not guarantee future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD colspan="6" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/06</FONT></B>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>&nbsp;
            </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
            </center></TD>
        <TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.56</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.33</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">1.41</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.75</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;14.70</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.20</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.19</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">0.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.21</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;15.61</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">26</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">26</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">23</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">5</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD width="14%">
<HR noshade size=1>
        </TD>
        <TD width="13%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">31</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">28</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">30</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">32</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">B</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Not Rated</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">A category
may contain multiple industries as defined by the SEC&#146;s Standard Industry
Codes.</FONT>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2005, the market value of these securities was
&#36;4,431,304 representing 5.3% of the Trust&#146;s long-term investments.</FONT></P>
<P align="center">
<FONT size=2 face="serif">6</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock California Municipal Income Trust II (BCL)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=80% align=left>
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">BCL</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <FONT size=2 face="serif">July 30, 2002</FONT>
            </center></TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;14.81</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;15.63</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/06 (&#36;14.81):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.31</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.0655</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.7860</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">37</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change. Past performance does not guarantee future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD colspan="6" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/06</FONT></B>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>&nbsp;
            </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
            </center></TD>
        <TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.81</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.26</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">3.86</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.81</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;13.18</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.63</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.52</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">0.71</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.63</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;14.94</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">22</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">5</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">47</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">40</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">B</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Not Rated</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">A category
may contain multiple industries as defined by the SEC&#146;s Standard Industry
Codes.</FONT>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2005, the market value of these securities was
&#36;4,280,829 representing 2.2% of the Trust&#146;s long-term investments.</FONT></P>
<P align="center">
<FONT size=2 face="serif">7</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock Florida Insured Municipal Income Trust (BAF)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=76% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">BAF</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="14%">
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">October 31, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;13.91</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;15.19</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/06 (&#36;13.91):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.0580</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.6960</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change. Past performance does not guarantee future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD colspan="6" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/06</FONT></B>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>&nbsp;
            </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
            </center></TD>
        <TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;13.91</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.30</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">(9.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.50</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;12.96</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.19</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.26</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">(0.46</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.26</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;14.73</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=37% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="18%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="17%">
<HR noshade size=1>
        </TD>
        <TD width="13%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">5</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=37% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="19%">
<HR noshade size=1>
        </TD>
        <TD width="14%">
<HR noshade size=1>
        </TD>
        <TD width="17%">
<HR noshade size=1>
        </TD>
        <TD width="13%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">83</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">83</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">A category
may contain multiple industries as defined by the SEC&#146;s Standard Industry
Codes.</FONT>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2006 and August 31, 2005, the market value of these
securities was &#36;4,452,642 representing 2.2% and &#36;5,029,809 representing 2.4%, respectively, of the Trust&#146;s long-term investments.</FONT></P>
<P align="center">
<FONT size=2 face="serif">8</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock Florida Municipal Bond Trust (BIE)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=79% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">BIE</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="13%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">April 30, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;16.90</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;16.25</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/06 (&#36;16.90):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.52</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.077808</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.933696</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change. Past performance does not guarantee future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD colspan="6" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/06</FONT></B>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>&nbsp;
            </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
            </center></TD>
        <TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.90</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.95</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">5.96</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;17.00</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;14.68</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.25</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.31</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">(0.37</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.31</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;15.83</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">27</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">27</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">5</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">37</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">38</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">22</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">22</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BB/Ba</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">A category
may contain multiple industries as defined by the SEC&#146;s Standard Industry
Codes.</FONT>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2006 and August 31, 2005, the market value of these
securities was &#36;1,691,896 representing 2.2% and &#36;2,831,177 representing 3.4%, respectively, of the Trust&#146;s long-term investments.</FONT></P>
<P align="center">
<FONT size=2 face="serif">9</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock Maryland Municipal Bond Trust (BZM)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
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<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">BZM</FONT>
        </TD>
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        <TD width="8%">
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<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">April 30, 2002</FONT>
        </TD>
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<FONT size=2 face="serif">Closing Market Price as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;17.20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
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<FONT size=2 face="serif">Net Asset Value as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;16.06</FONT>
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<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/06 (&#36;17.20):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.43</FONT>
        </TD>
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<FONT size=2 face="serif">%</FONT>&nbsp;
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<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.07135</FONT>
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<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.8562</FONT>
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<FONT size=2 face="serif">Leverage as of 2/28/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
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<BR>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change. Past performance does not guarantee future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
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        </TD>
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      <center>
        <B><FONT size=2 face="serif">2/28/06</FONT></B>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>&nbsp;
            </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
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      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
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        <TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
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<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;17.20</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.96</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">7.77</FONT>
        </TD>
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<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;17.80</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;15.60</FONT>&nbsp;
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<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
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      <center>
        <FONT size=2 face="serif">&#36;16.06</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.11</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">(0.31</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.11</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;15.73</FONT>&nbsp;
        </TD>
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<P>
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
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<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
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        <TD width="15%">
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        <TD width="17%">
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        <TD width="13%">
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<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>
        </TD>
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<FONT size=2 face="serif">%</FONT>&nbsp;
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<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18</FONT>
        </TD>
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<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18</FONT>
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<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
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        </TD>
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<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
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<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
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<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
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        </TD>
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<FONT size=2 face="serif">Power</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
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        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
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        </TD>
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<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
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        </TD>
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<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">5</FONT></SUP></B></P>
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<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
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        <TD width="17%">
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        <TD width="13%">
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<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">38</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">34</FONT>
        </TD>
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<FONT size=2 face="serif">%</FONT>&nbsp;
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<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
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        </TD>
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<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">30</FONT>
        </TD>
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        </TD>
        <TD align=right>
<FONT size=2 face="serif">35</FONT>
        </TD>
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        </TD>
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<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
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<FONT size=2 face="serif">Not Rated</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>
        </TD>
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<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">A category
may contain multiple industries as defined by the SEC&#146;s Standard Industry
Codes.</FONT>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2005, the market value of these securities was
&#36;1,043,280 representing 2.2% of the Trust&#146;s long-term investments.</FONT></P>
<P align="center">
<FONT size=2 face="serif">10</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=79% align=left>
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">BLJ</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="13%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">April 30, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;16.82</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;16.29</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/06 (&#36;16.82):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.61</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.078582</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.942984</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">35</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change. Past performance does not guarantee future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD colspan="6" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/06</FONT></B>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>&nbsp;
            </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
            </center></TD>
        <TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.82</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.98</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">5.26</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;17.70</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;15.13</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.29</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.26</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">0.18</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.29</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;15.77</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">28</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">28</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">5</FONT></SUP></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD width="14%">
<HR noshade size=1>
        </TD>
        <TD width="13%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">30</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">25</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">19</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">23</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">42</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">43</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">B</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Not Rated</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">A category
may contain multiple industries as defined by the SEC&#146;s Standard Industry
Codes.</FONT>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P align="center">
<FONT size=2 face="serif">11</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=76% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">BSE</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="9%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">October 31, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;14.23</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;15.35</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/06 (&#36;14.23):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4.89</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.058</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.696</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change. Past performance does not guarantee future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD colspan="6" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/06</FONT></B>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>&nbsp;
            </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
            </center></TD>
        <TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.23</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.35</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">(7.30</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.76</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;13.08</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.35</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.30</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">0.33</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.35</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;14.79</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=37% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="18%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="14%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">31</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">30</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">31</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">29</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">5</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=37% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="18%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">84</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">80</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">A category
may contain multiple industries as defined by the SEC&#146;s Standard Industry
Codes.</FONT>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P align="center">
<FONT size=2 face="serif">12</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock New York Municipal Bond Trust (BQH)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=79% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">BQH</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="13%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">April 30, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;16.68</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;16.08</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/06 (&#36;16.68):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.55</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.077099</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.925188</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change. Past performance does not guarantee future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD colspan="6" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/06</FONT></B>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>&nbsp;
            </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
            </center></TD>
        <TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.68</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.85</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">5.24</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;17.00</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;15.19</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.08</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.09</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">(0.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.10</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;15.67</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="13%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">5</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="13%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">39</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">19</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">24</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">18</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">22</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">26</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BB/Ba</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">B</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">CCC/Caa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">A category
may contain multiple industries as defined by the SEC&#146;s Standard Industry
Codes.</FONT>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6 </FONT></SUP><FONT size=1 face="serif">As of February 28, 2006 and August 31, 2005, less than 0.5% of long-term investments were held.</FONT></P>
<P align="center">
<FONT size=2 face="serif">13</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock New York Municipal Income Trust II (BFY)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=80% align=left>
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">BFY</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">July 30, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;14.37</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;15.41</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/06 (&#36;14.37):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.05925</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.71100</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">37</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change. Past performance does not guarantee future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD colspan="6" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/06</FONT></B>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>&nbsp;
            </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
            </center></TD>
        <TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.37</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.02</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">2.50</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.37</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;12.79</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.41</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.23</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">1.18</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.41</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;14.82</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="13%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">19</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">5</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="13%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">33</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">33</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">32</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">24</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">19</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BB/Ba</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">B</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">CCC/Caa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Not Rated</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">A category
may contain multiple industries as defined by the SEC&#146;s Standard Industry
Codes.</FONT>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P align="center">
<FONT size=2 face="serif">14</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock Virginia Municipal Bond Trust (BHV)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=79% align=left>
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">BHV</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="13%">
<HR noshade size=1>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">April 30, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;17.73</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/06:</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;16.35</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/06 (&#36;17.73):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.072428</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.869136</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/06:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">35</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change. Past performance does not guarantee future results.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD colspan="6" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/06</FONT></B>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/05</FONT></B>&nbsp;
            </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
            </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
            </center></TD>
        <TD align=center>
<B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;17.73</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;17.30</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">2.49</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;18.25</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;16.12</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.35</FONT>&nbsp;
            </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.34</FONT>&nbsp;
            </center></TD>
        <TD align=right>
<FONT size=2 face="serif">0.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.35</FONT>&nbsp;
            </center></TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;15.87</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the asset composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">18</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">18</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">5</FONT></SUP></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2006</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2005</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="16%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">45</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">45</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">A category
may contain multiple industries as defined by the SEC&#146;s Standard Industry
Codes.</FONT>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">Using the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2006 and August 31, 2005, the market value of these
securities was &#36;1,432,063 representing 3.8% and &#36;2,478,468 representing 6.5%, respectively, of the Trust&#146;s long-term investments.</FONT></P>
<P align="center">
<FONT size=2 face="serif">15</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">PORTFOLIO OF INVESTMENTS (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (BYM)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=8% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=center>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
    </center></TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=56% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=11% align=left>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=5% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;150.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">California&#151;38.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">California St., GO,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">&#36; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 2/01/32, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
      </div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,236,100</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 3/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">03/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,236,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">14,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dept. of Wtr. Res., Pwr. Sply. RB, Ser. A, 5.375%, 5/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">15,539,440</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Golden St. Tobacco Sec. Corp. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 6/01/35, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,466,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,500</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-1, 6.625%, 6/01/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,260,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">14,500</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-1, 6.75%, 6/01/39</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">16,306,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">12,100</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Infrastructure &amp; Econ. Dev. RB, Bay Area Toll Brdgs., Ser. A, 5.00%, 7/01/36, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">12,666,401</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,245</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Los Angeles Dept. of Wtr. &amp; Pwr. Sys. RB, 5.00%, 7/01/31, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,653,690</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">17,500</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Met. Wtr. Dist. So. California RB, Ser. B-1, 5.00%, 10/01/33, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">18,365,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">15,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Francisco City &amp; Cnty. Pub. Utils. Comm., Wtr. RB, Ser. A, 5.00%, 11/01/31, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">15,667,350</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">53,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Joaquin Hills Transp. Corridor Agcy., Toll Rd. RB, Ser. A, Zero Coupon, 1/15/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">16,694,470</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Univ. of California RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, 4.75%, 5/15/37, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,176,100</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,330</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. G, 4.75%, 5/15/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,400,097</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,910</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. O, 5.00%, 9/01/28, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">09/10 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">11,418,515</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">156,087,063</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">District of Columbia&#151;2.5%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,500</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tobacco Settlement Fin. Corp. RB, 6.75%, 5/15/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,313,675</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Florida&#151;8.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">25,520</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Miami Dade Cnty. RB, Cap. Apprec. Sub. Proj., Ser. A, Zero Coupon, 10/01/38, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/15 @ 30.363</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,824,045</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">24,700</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Orlando &amp; Orange Cnty., Expwy. Auth., Expwy. RB, Ser. B, 5.00%, 7/01/35, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">25,775,438</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,265</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Peace River/Manasota Regl. Wtr. Sply. Auth. RB, 5.00%, 10/01/30, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,401,104</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">33,000,587</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Georgia&#151;4.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,500</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Atlanta Arpt. Passenger Fac. RB, Ser. J, 5.00%, 1/01/34, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,610,450</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Atlanta Wtr. &amp; Wstwtr. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 11/01/34, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,092,860</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,235</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 11/01/37, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,373,361</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,555</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 11/01/38, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/09 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,891,049</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">17,967,720</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Illinois&#151;17.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">11,550</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Chicago Spec. Transp. RB, 5.25%, 1/01/27, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">12,195,876</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Chicago, GO,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">13,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 1/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">13,502,320</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 1/01/34, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,257,530</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Met. Pier &amp; Exposition Auth., Ded. St. Tax RB., McCormick Place Expansion Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">24,010</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 12/15/28, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">25,126,225</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">15,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 6/15/28, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,516,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">O&#146;Hare Intl. Arpt. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,400</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 1/01/30, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,511,408</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,180</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 1/01/33, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,472,932</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">72,582,541</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Maine&#151;0.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">500</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hlth. &amp; Higher Edl. Fac. Auth. RB, 5.00%, 7/01/29, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">526,630</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Massachusetts&#151;9.5%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">24,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tpke. Auth., Met. Hwy. Sys. RB, Ser. A, 5.00%, 1/01/39, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/09 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">24,602,640</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">13,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Wtr. Res. Auth. RB, Ser. B, 5.00%, 8/01/35, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/17 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">13,765,310</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">38,367,950</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Minnesota&#151;1.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">St. Paul Met. Arpt. Comm. RB, 5.00%, 1/01/35, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,209,750</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">16</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (BYM) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=8% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=6% align=center>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
    </center></TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=55% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=10% align=left>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=1%>&nbsp;</TD>
        <TD width=5% align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Nevada&#151;7.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Reno Transp. Proj. RB, 5.125%, 6/01/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/12 @ 100 </FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,278,220</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Truckee Meadows Wtr. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 7/01/25, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,377,800</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,500</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.125%, 7/01/30, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,799,780</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.25%, 7/01/34, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,245,550</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">28,701,350</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">New York&#151;8.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Mun. Wtr. Fin. Auth., Wtr. &amp; Swr. Sys. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,650</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.00%, 6/15/36, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">11,205,823</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,305</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, 5.00%, 6/15/35, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,652,499</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Trust Cultural Recs. RB, American Museum of Natural History Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 7/01/44, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,442,300</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,660</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Sales Tax Asset Receivable Corp. RB, Ser. A, 5.00%, 10/15/29, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,944,307</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">34,244,929</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Ohio&#151;4.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">12,280</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Air Qual. Dev. Auth. RB, 4.80%, 1/01/34, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">12,547,950</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Wtr. Dev. Auth., Poll. Ctrl. Facs. RB, Dayton Pwr. &amp; Lt. Proj., Ser. A, 4.80%, 1/01/34, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,085,260</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">18,633,210</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Pennsylvania&#151;2.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Lebanon Cnty. Hlth. Facs. Auth. RB, Good Samaritan Hosp. Proj., 6.00%, 11/15/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,391,150</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,200</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Philadelphia Gas Wks. RB, Ser. 3, 5.125%, 8/01/11, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,591,872</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,983,022</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD><hr noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">South Carolina&#151;9.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Pub. Svc. Auth. RB, Ser. B, 5.50%, 1/01/36, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,396,950</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Transp. Infrastructure Bank RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">12,750</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 10/01/33, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">13,241,385</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 10/01/33, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,234,000</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">12,660</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.125%, 10/01/26, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">13,397,825</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">37,270,160</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Tennessee&#151;3.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Knox Cnty. Hlth. Edl. &amp; Hsg. Facs. Brd., Hosp. Facs. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">11,705</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 1/01/22, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/13 @ 59.566</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,986,564</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,260</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 1/01/23, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/13 @ 56.016</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,704,926</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,500</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 1/01/24, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/13 @ 52.749</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,196,085</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,850</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 1/01/25, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/13 @ 49.712</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,425,722</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 1/01/26, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/13 @ 46.781</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,661,800</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">15,975,097</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Texas&#151;21.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,030</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Coppell Indpt. Sch. Dist., GO, Zero Coupon, 8/15/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,175,297</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,350</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dallas Area Rapid Trans. RB, 5.00%, 12/01/31, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,429,172</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Harris Cnty.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,485</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">GO, Zero Coupon, 8/15/25, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,108,221</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,915</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">GO, Zero Coupon, 8/15/28, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,855,069</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,510</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Toll Rd. RB, 5.00%, 8/15/30, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,725,110</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Harris Cnty. Sports Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">26,890</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-3, Zero Coupon, 11/15/38, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/24 @ 43.826</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,705,750</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">27,675</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-3, Zero Coupon, 11/15/39, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/24 @ 41.258</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,551,154</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,785</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. H, Zero Coupon, 11/15/38, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/31 @ 64.91</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,008,846</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,160</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. H, Zero Coupon, 11/15/39, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/31 @ 60.976</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,009,131</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,500</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Northside Indpt. Sch. Dist., Sch. Bldg. Rmkt., GO, 5.125%, 6/15/29</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,067,910</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Antonio Wtr. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,350</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.125%, 5/15/29, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,917,545</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.125%, 5/15/34, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,564,400</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">25,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tpke. Auth., Central Sys. RB, Ser. A, 5.00%, 8/15/42, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">25,734,750</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tyler Cnty. Hlth. Facs. Dev. RB, Mother Frances Hosp. Proj., 6.00%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,157,470</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">89,009,825</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">17</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (BYM) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=center>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
    </center></TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=54% align=left>&nbsp;

        </TD>
        <TD width=3% align=left>&nbsp;

        </TD>
        <TD width=10% align=left>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=1% align=left>

          <div align="left"></div></TD>
        <TD width=6% align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Virginia&#151;1.9%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Chesterfield Cnty. Indl. Dev. Auth., PCR RB, Elec. &amp; Pwr. Co. Proj.,</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.875%, 6/01/17</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/10 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
      </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,278,160</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,000</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.875%, 6/01/17</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/10 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,370,880</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,649,040</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Washington&#151;8.6%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,610</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Central Washington Univ., Sys. RB, 5.00%, 5/01/34, FGIC</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,034,666</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,655</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Chelan Cnty. Pub. Util. Dist. 1 RB, Chelan Hydro Sys. Proj., Ser. C, 5.125%, 7/01/33, AMBAC</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,822,326</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,500</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Port of Seattle RB, Ser. A, 5.00%, 4/01/31, FGIC</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,656,870</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,500</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Seattle, GO, Ser. F, 5.125%, 12/15/28, MBIA</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/08 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,796,020</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,380</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Washington, GO, Ser. A, 5.00%, 7/01/25, FSA</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,655,042</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">34,964,924</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">West Virginia&#151;0.3%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,295</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Econ. Dev. Auth. RB, Correctional Juvenile Safety Proj., Ser. A, 5.00%, 6/01/29, MBIA</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,362,793</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;577,397,890)</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">612,850,266</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">SHORT-TERM INVESTMENTS&#151;4.5%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Tennessee&#151;2.5%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">VMIG1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,000</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Montgomery Cnty. Pub. Bldg. RB, 3.00%, 3/01/06, FRDD</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,000,000</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR>
        <TD>&nbsp;

        </TD>
    <TD>&nbsp;</TD>
    <TD><hr align="right" 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>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="left"></div></TD>
        <TD>
          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Money Market Fund&#151;2.0%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,200</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">AIM Tax Free Investment Co. Cash Reserve Portfolio</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,200,000</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Short-Term Investments (cost &#36;18,200,000)</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">18,200,000</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;155.3% (cost &#36;595,597,890</FONT></B><B><SUP><FONT size=1 face="serif">6</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
      </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">631,050,266</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.1%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,352,901</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(56.4)%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">(229,020,279)</FONT>   </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
      </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">406,382,888</FONT>&nbsp;       </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>       </TD>
        <TD>
      <hr noshade size=3>       </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">Security, or a portion thereof, pledged as collateral with a value of &#36;2,531,408 on 472 short U.S. Treasury Note futures contracts expiring June 2006 and 632 short U.S.
Treasury Bond futures contracts expiring June 2006. The value of such contracts on February 28, 2006 was &#36;122,407,000, with an unrealized loss of &#36;420,171.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">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. Rate shown is rate as of February 28, 2006.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6</FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;595,581,575. The net unrealized appreciation on a tax basis is &#36;35,468,691, consisting of &#36;35,512,155 gross unrealized
appreciation and &#36;43,464 gross unrealized depreciation.</FONT></P>
<P>
<FONT size=1 face="serif">The value (market value plus accrued interest) of securities that are covered by insurance, which ensures the payment of principal and interest, represent approximately 83.2% of the Trust&#146;s managed assets. The Trust
had the following insurance concentrations:</FONT></P>
<TABLE width="10%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=15% align=left nowrap>
<FONT size=1 face="serif">AMBAC</FONT>&nbsp;
        </TD>
        <TD width=15% align=right nowrap>
      <center>
        <FONT size=1 face="serif">&#151;</FONT>&nbsp;
      </center></TD>
        <TD width=15% align=left nowrap>
<FONT size=1 face="serif">25.9%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=15% align=left nowrap>
<FONT size=1 face="serif">FGIC</FONT>&nbsp;
        </TD>
        <TD width=15% align=right nowrap>
      <center>
        <FONT size=1 face="serif">&#151;</FONT>&nbsp;
      </center></TD>
        <TD width=15% align=left nowrap>
<FONT size=1 face="serif">17.6%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=15% align=left nowrap>
<FONT size=1 face="serif">FSA</FONT>&nbsp;
        </TD>
        <TD width=15% align=right nowrap>
      <center>
        <FONT size=1 face="serif">&#151;</FONT>&nbsp;
      </center></TD>
        <TD width=15% align=left nowrap>
<FONT size=1 face="serif">16.9%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=15% align=left nowrap>
<FONT size=1 face="serif">MBIA</FONT>&nbsp;
        </TD>
        <TD width=15% align=right nowrap>
      <center>
        <FONT size=1 face="serif">&#151;</FONT>&nbsp;
      </center></TD>
        <TD width=15% align=left nowrap>
<FONT size=1 face="serif">21.4%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=15% align=left nowrap>
<FONT size=1 face="serif">Other</FONT>&nbsp;
        </TD>
        <TD width=15% align=right nowrap>
      <center>
        <FONT size=1 face="serif">&#151;</FONT>&nbsp;
      </center></TD>
        <TD width=15% align=left nowrap>
<FONT size=1 face="serif">1.4%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap><center>
  </center></TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
</TABLE>
<div style="border:1px solid #000000; padding:5px">
  <p align="center"> <b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b></p>
  <table width="90%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; American Municipal Bond
          Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Guaranty Insurance
          Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Municipal Bond Insurance
          Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Security Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">PCR</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Pollution Control Revenue</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FRDD</font>&nbsp; </td>
      <td align=left> <b><font size=2 face="serif">&#151; </font></b><font size=2 face="serif">Floating
          Rate Daily Demand</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td align=left>&nbsp;</td>
    </tr>
  </table>
</div>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">18</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">PORTFOLIO OF INVESTMENTS (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock Municipal Bond Trust (BBK)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=8% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=6% align=center>
<B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=57% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=11% align=left>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=1% align=left>

          <div align="left"></div></TD>
        <TD width=5% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
            </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;144.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Alabama&#151;4.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Huntsville Hlth. Care Auth. RB, Ser. A, 5.75%, 6/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=right>
<FONT size=1 face="serif">7,938,375</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Arizona&#151;0.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">San. Luis Fac. Dev. Corp. RB, Regl. Detention Ctr. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">300</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.25%, 5/01/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/10 @ 107</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">296,115</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">300</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.00%, 5/01/20</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/10 @ 107</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">295,479</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">600</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">7.25%, 5/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/10 @ 107</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">589,746</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,181,340</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">California&#151;7.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Golden St. Tobacco Sec. Corp. RB, Ser. A, 5.00%, 6/01/45</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">6,152,940</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,960</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Los Angeles Dept. of Wtr. &amp; Pwr. Sys. RB, 5.00%, 7/01/31, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">3,126,973</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,525</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Los Angeles Unified Sch. Dist., Election of 2004, Ser. F, 5.00%, 7/01/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,619,718</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,585</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Val Verde Unified Sch. Dist. Fin. Auth. ST, 6.25%, 10/01/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,669,750</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">12,569,381</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Colorado&#151;0.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">635</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Park Creek Met. Dist. RB, Ppty. Tax, 5.50%, 12/01/37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/15 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">657,301</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">635</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Springs Co. Utils. RB, Ser. C, 5.00%, 11/15/45, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">659,695</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,316,996</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">District of Columbia&#151;11.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">595</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Friendship Pub. Charter Sch., Inc. Proj., RB 5.25%, 6/01/33, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">607,322</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Gallary Place Proj. TA, 5.40%, 7/01/31, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">6,402,960</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">33,450</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Georgetown Univ. RB, Ser. A, Zero Coupon, 4/01/38, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/11 @ 20.243</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,259,009</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,580</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tobacco Settlement Fin. Corp. RB, 6.75%, 5/15/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">6,057,927</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">18,327,218</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Florida&#151;20.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,455</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Brd. of Ed. Pub. Ed., Cap. Outlay, GO, Ser. A, 5.00%, 6/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/14 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">3,651,175</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Martin Cnty. Indl. Dev. Auth. RB, Indiantown Cogeneration Proj., Ser. A, 7.875%, 12/15/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">03/06 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">6,403,794</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,810</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Miami Beach Hlth. Facs. Auth. RB, Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">3,154,647</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Orange Cnty. Hlth. Facs. Auth. RB, Hosp. Adventist Hlth. Sys. Proj., 5.625%, 11/15/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">10,706,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,255</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Palm Beach Cnty. Hsg. Fin. Auth., Multi-Fam. RB, Indian Trace Apts. Proj., Ser. A,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.625%, 1/01/44, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">7,481,211</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">925</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Peace River/Manasota Regl. Wtr. Sply. Auth. RB, 5.00%, 10/01/30, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">980,583</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Stevens Plantation Cmnty. Dev. Dist. ST, Ser. A, 7.10%, 5/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,049,770</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">33,427,180</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Georgia&#151;5.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Atlanta Arpt. Passenger Fac. RB, Ser. J, 5.00%, 1/01/34, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">3,132,540</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Atlanta Wtr. &amp; Wstwtr. RB, 5.00%, 11/01/37, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,213,850</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">8,346,390</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Illinois&#151;21.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">23,065</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Bolingbrook, GO, Ser. B, Zero Coupon, 1/01/36, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/12 @ 23.018</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">4,101,188</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,150</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Centerpoint Intermodal Ctr. Prog. Trust TA, Ser. A, 8.00%, 6/15/23</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,168,538</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Chicago, GO,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">55</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.50%, 1/01/11, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">60,207</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,825</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.50%, 1/01/38, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">6,237,002</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Edl. Facs. Auth., Student Hsg. RB, Edl. Advancement Fund Univ. Ctr. Proj., 6.25%, 5/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/07 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">6,156,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Fin. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">420</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Friendship Vlg, Schaumburg Proj., Ser. A, 5.625%, 2/15/37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">02/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">423,465</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">525</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Student Hsg., MJH Ed. Asst. Living Proj., Ser. A, 5.125%, 6/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">524,522</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">425</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Student Hsg., MJH Ed. Asst. Living Proj., Ser. B, 5.375%, 6/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">424,601</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hlth. Facs. Auth. RB, Lake Forest Hosp. Proj., Ser. A, 5.75%, 7/01/29</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">6,412,020</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Met. Pier &amp; Exposition Auth., Ded. St. Tax. RB, McCormick Place Expansion Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 6/15/35, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,602,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 12/15/36, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,414,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 12/15/37, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,298,500</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">19</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Municipal Bond Trust (BBK) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
    </center></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=57% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=9% align=left>&nbsp;

        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=1% align=left>

          <div align="left"></div></TD>
        <TD width=5% align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Illinois&#151;(continued)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">O&#146;Hare Intl. Arpt. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 1/01/29, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,047,170</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 1/01/30, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,046,420</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">34,916,833</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Indiana&#151;1.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Aa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,985</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Multi-Fam. Hsg. RB, Canterbury House Apts. Proj., Ser. 1, 5.90%, 12/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,074,662</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Kansas&#151;3.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Wichita Arpt. Auth., Arpt. Facs. RB, Cessna Citation Svc. Ctr. Proj., Ser. A, 6.25%, 6/15/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,386,450</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Maine&#151;1.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,800</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hlth. &amp; Higher Edl. Fac. Auth. RB, 5.00%, 7/01/29, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,895,868</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Maryland&#151;3.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,250</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Baltimore ST, Harborview Lot No. 2 Proj., 6.50%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,339,088</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Frederick Cnty. ST, Urbana Cmnty. Dev. Auth., Ser. B, 6.25%, 7/01/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/07 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,052,710</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,040</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hlth. &amp; Higher Edl. Facs. Auth. RB, Medstar Hlth. Proj., 5.50%, 8/15/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,082,723</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,474,521</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Multi-State&#151;7.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">11,909,310</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Nevada&#151;0.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,400</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Las Vegas Spec. Impvt. Dist. No. 809 RB, Summerlin Area Proj., 5.65%, 6/01/23</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/06 @ 103</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,438,668</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">New Jersey&#151;9.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Econ. Dev. Auth.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Cigarette Tax RB, 5.50%, 6/15/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,580,610</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Continental Airlines, Inc. Proj. RB, 7.20%, 11/15/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/10 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,033,900</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kapkowski Rd. Landfill Proj. SA, 6.50%, 4/01/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,015,675</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Winchester Proj. RB, Ser. A, 5.80%, 11/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,563,570</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">915</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Middlesex Cnty. Imprt. Auth. RB, Heldrich Ctr. Hotel Proj., Ser. B, 6.25%, 1/01/37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">912,612</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">16,106,367</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">New York&#151;14.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">455</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Albany Indl. Dev. Agcy. RB, New Covenant Charter Sch. Proj., Ser. A, 7.00%, 5/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/15 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">433,201</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,330</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Env. Facs. Corp., St. Clean Wtr. &amp; Drinking Wtr. RB, NYC Mun. Wtr. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.00%, 6/15/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,390,382</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,760</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Liberty Dev. Corp. Proj. RB, 5.25%, 10/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,937,519</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,760</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Met. Transp. Auth. Svc. Contract RB, Ser. A, 5.00%, 7/01/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,836,437</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,100</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Indl. Dev. Agcy. RB, American Airlines, JFK Intl. Arpt. Proj., 7.75%, 8/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/16 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,725,968</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,885</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Sales Tax Asset Receivable Corp. RB, Ser. A, 5.00%, 10/15/29, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000,004</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">24,323,511</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">North Carolina&#151;1.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,945</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Gaston Cnty. Indl. Facs. &amp; Poll. Ctrl. Fin. Auth. RB, 5.75%, 8/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,101,703</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Ohio&#151;3.5%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,220</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Air Qual. Dev. Auth. RB, 4.80%, 1/01/34, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,312,080</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Port Greater Cincinnati Dev. Auth. RB, Cooperative Pub. Pkg. Infrastructure Proj., 6.40%, 2/15/34 .</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">02/14 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,583,265</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,895,345</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Oklahoma&#151;1.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,725</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tulsa Mun. Arpt. Trust RB, Ser. A, 7.75%, 6/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,854,427</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Oregon&#151;0.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Aa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">990</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Multi-Fam. Hsg. RB, Pacific Tower Apts. Proj., Ser. 6, 6.05%, 11/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,035,896</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Pennsylvania&#151;3.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,895</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Econ. Dev. Fin. Auth. Exempt Facs. RB, Reliant Energy Conv. Proj., Ser. A, 6.75%, 12/01/36</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/09 @ 103</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,237,112</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">South Carolina&#151;0.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Jobs Econ. Dev. Auth. Hosp. Facs. RB., Palmetto Hlth. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">890</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, 7.00%, 8/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,069,228</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">110</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, 7.00%, 8/01/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">128,141</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,197,369</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">20</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Municipal Bond Trust (BBK) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=8% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=6% align=center>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
            </center></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=57% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=10% align=left>&nbsp;

        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=1%>&nbsp;</TD>
        <TD width=5% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
            </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Texas&#151;15.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;880</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Brazos River Auth., PCR RB, TXU Elec. Co. Proj., Ser. C, 6.75%, 10/01/38</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/13 @ 101 </FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">969,998</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">940</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dallas Area Rapid Trans. RB, 5.00%, 12/01/31, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">971,669</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">11,690</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Harris Cnty. Houston Sports Auth. RB, Ser. G, Zero Coupon, 11/15/41, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/31 @ 53.779</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">1,688,971</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Aa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,825</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Multi-Fam. Hsg. RB, Copperwood Ranch Apts. Proj., Ser. 9, 5.95%, 11/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">2,952,859</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">60,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tpke. Auth., Central Sys. RB., Zero Coupon, 8/15/35, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 25.665</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">11,533,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,840</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tyler Cnty. Hlth. Facs. Dev. RB, Mother Frances Hosp. Proj., 6.00%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">7,199,032</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><hr noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">25,316,329</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD><hr noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">West Virginia&#151;0.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">520</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Econ. Dev. Auth. RB, Correctional Juvenile Safety Proj., Ser. A, 5.00%, 6/01/29, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">547,222</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><hr noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Wisconsin&#151;5.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hlth. &amp; Edl. Facs. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,350</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Aurora Hlth. Care Proj., 6.40%, 4/15/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">1,498,568</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Wheaton Franciscan Svcs. Proj., 5.75%, 8/15/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">02/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">7,460,530</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">530</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Pub. Pwr, Inc. Sys. RB, Ser. A, 5.00%, 7/01/37, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">554,910</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><hr noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">9,514,008</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD><hr noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;222,085,947)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">240,332,481</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD><hr noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD colspan=10>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">SHORT-TERM INVESTMENTS&#151;8.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Massachusetts&#151;0.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-1+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">100</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hlth. &amp; Edl. Fac. Auth. RB., Harvard Univ. Proj., Ser. GG-1, 3.05%, 3/02/06, FRWD</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">100,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><hr noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD>&nbsp;

        </TD>
    <TD>&nbsp;</TD>
    <TD><hr noshade size=1></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="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD></TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Money Market Funds&#151;8.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,300</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">AIM Tax Free Investment Co. Cash Reserve Portfolio</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">8,300,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,300</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">SSgA Tax Free Money Mkt. Fund</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">6,300,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">14,600,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Short-Term Investments (cost &#36;14,700,000)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">14,700,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;153.3% (cost &#36;236,785,947</FONT></B><B><SUP><FONT size=1 face="serif">7</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">255,032,481</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.1%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">1,902,978</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(54.4)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">(90,544,746)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">166,390,713</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD><hr noshade size=3>    </TD>
        <TD>
      <hr noshade size=3>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<P>
<SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">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 28, 2006, the Trust held 7.9% of its net assets, with a current market value of &#36;13,077,848, in securities restricted as to resale.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">Security, or a portion thereof, pledged as collateral with a value of &#36;553,722 on 106 short U.S. Treasury Note futures contracts expiring June 2006 and 142 short U.S.
Treasury Bond futures contracts expiring June 2006. The notional value of such contracts on February 28, 2006 was &#36;43,687,438, with an unrealized loss of &#36;150,122.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6 </FONT></SUP><FONT size=1 face="serif">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. Rate shown is rate as of February 28, 2006.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">7 </FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;236,781,087. The net unrealized appreciation on a tax basis is &#36;18,251,394, consisting of &#36;18,292,099 gross unrealized
appreciation and &#36;40,705 gross unrealized depreciation.</FONT></P>
<div style="border:1px solid #000000; padding:5px">
  <p></p>
  <p align="center"> <b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b></p>
  <table width="90%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">ACA</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; American Capital
          Access</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">PCR</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Pollution Control
          Revenue</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Revenue Bonds</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FRWD</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Floating Rate
          Weekly Demand</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">ST</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Special Tax</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">TA</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Tax Allocation</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left>&nbsp; </td>
      <td align=left>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td align=left>&nbsp;</td>
    </tr>
  </table>
  </div>
<P><BR>
</P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">21</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">PORTFOLIO OF INVESTMENTS (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=center>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
    </center></TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=60% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=10% align=left>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=1% align=left>

          <div align="left"></div></TD>
        <TD width=5% align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;145.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">California&#151;6.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,250</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Agua Caliente Band RB, Cahuilla Indians Proj., 6.00%, 7/01/18</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,375,168</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,390</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Los Angeles Dept. of Wtr. &amp; Pwr. Sys. RB, 5.00%, 7/01/31, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,750,460</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Mobilehome Park Fin. Auth. RB, Palomar Estates East &amp; West Proj., Ser. A, 5.25%, 3/15/34, ACA .</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">03/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,624,670</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,620</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Francisco City &amp; Cnty. Redev. Agcy. ST, Cmnty. Facs. Dist., Mission Bay South Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.625%, 8/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,013,947</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Statewide Cmnty. Dev. Auth. RB, Mem. Hlth. Svcs. Proj., Ser. A, 5.50%, 10/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,290,700</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">23,054,945</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Colorado&#151;5.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hlth. Facs. Auth. RB, Catholic Hlth. Initiatives Proj., Ser. A, 5.50%, 3/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">ETM</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,713,900</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Northwest Pkwy. Pub. Hwy. Auth. RB, Ser. A, 5.25%, 6/15/41, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/11 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,237,760</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,375</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Park Creek Met. Dist. RB, Ppty. Tax, 5.50%, 12/01/37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/15 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,423,290</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,375</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Springs Co. Utils. RB, Ser. C, 5.00%, 11/15/45, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,428,474</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">17,803,424</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">District of Columbia&#151;6.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,265</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Friendship Pub. Charter Sch., Inc. Proj. RB, 5.25%, 6/01/33, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,291,198</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tobacco Settlement Fin. Corp. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.50%, 5/15/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,658,975</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">11,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.75%, 5/15/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">12,484,975</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">22,435,148</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Florida&#151;15.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">515</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Fishhawk Cmnty. Dev. Dist. II, Spec. Assmt. RB, Ser. B, 5.00%, 11/01/07</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">513,687</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,780</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Lakes by the Bay So. Cmnty. Dev. Dist. RB, Ser. A, 6.25%, 5/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/14 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,100,977</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,650</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Leesburg Hosp. RB, Leesburg Regl. Med. Ctr. Proj., 5.50%, 7/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,747,096</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,165</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Live Oak Comm. Dev., Dist. No. 1, SA, Ser. A, 6.30%, 5/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,315,116</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,230</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Miami Beach Hlth. Facs. Auth. RB, Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,994,109</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,850</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Orange Cnty. Hlth. Facs. Auth. RB, Hosp. Adventist Hlth. Sys. Proj., 5.625%, 11/15/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,333,610</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Peace River/Manasota Regl. Wtr. Sply. Auth. RB, 5.00%, 10/01/30, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,120,180</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">14,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Pinellas Cnty. Hlth. Fac. Auth. RB, Baycare Hlth. Sys. Proj., 5.50%, 11/15/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">14,816,620</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,085</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Stevens Plantation Cmnty. Dev. Dist., SA, Ser. A, 7.10%, 5/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,188,770</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,575</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Sumter Cnty. Ind. Dev. Auth. RB, No. Sumter Util. Co. LLC Proj., 6.90%, 10/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/09 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,800,319</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,715</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Sumter Landing Cmnty. Dev., SA, 6.875%, 5/01/23</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,034,156</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">53,964,640</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Georgia&#151;2.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Atlanta Arpt. Passenger Fac. RB, Ser. J, 5.00%, 1/01/34, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,176,720</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Milledgeville-Baldwin Cnty. Dev. Auth. RB, Georgia Coll. &amp; St. Univ. Fndtn. Proj., 5.625%, 9/01/30 .</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">09/14 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,267,900</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,444,620</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Illinois&#151;17.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Bolingbrook, GO, Ser. A, 5.375%, 1/01/38, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,238,360</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,470</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Centerpoint Intermodal Ctr. Prog. Trust TA, Ser. A, 8.00%, 6/15/23</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,509,816</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,500</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP>
            </div></TD>
        <TD><SUP><FONT size=1 face="serif">.7</FONT></SUP>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dev. Fin. Auth. Hosp. RB, Adventist Hlth. Sys. Sunbelt Oblig. Proj., 5.65%, 11/15/09</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,104,275</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Fin. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">910</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Friendship Vlg. Schaumburg Proj., Ser. A, 5.625%, 2/15/37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">02/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">917,508</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,125</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Student Hsg., MJH Ed. Asst. Living Proj., Ser. A, 5.125%, 6/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,123,976</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">900</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Student Hsg., MJH Ed. Asst. Living Proj., Ser. B, 5.375%, 6/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">899,154</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,880</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Northwestern Mem. Hosp. Proj., Ser. A, 5.50%, 8/15/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,012,258</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hlth. Facs. Auth. RB, Elmhurst Mem. Hlth. Care Proj., 5.50%, 1/01/22</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,431,600</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Met. Pier &amp; Exposition Auth., Ded. St. Tax RB, McCormick Place Expansion Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">45,190</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 6/15/33, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">12,997,096</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 6/15/40, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,013,500</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">O&#146;Hare Intl. Arpt. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,100</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 1/01/30, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,197,482</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,290</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C-2, 5.25%, 1/01/30, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,491,373</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">15,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Sports Facs. Auth., Ded. St. Tax Supported RB, Zero Coupon, 6/15/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/15 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">12,981,900</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">61,918,298</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">22</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=8% align=center>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
    </center></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=57% align=left>&nbsp;

        </TD>
        <TD width=11% align=left>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=1% align=left>

          <div align="left"></div></TD>
        <TD width=5% align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Indiana&#151;7.5%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">&#36; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hlth. Fac. Fin. Auth. RB, Ascension Hlth. Proj., Ser. F, 5.375%, 11/15/25</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,281,700</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">19,735</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Indianapolis Local Pub. Impvt. Bond Bank RB, Wtr. Wks. Proj., Ser. A, 5.25%, 7/01/12, MBIA</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">21,492,007</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">26,773,707</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Maine&#151;0.4%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hlth. &amp; Higher Edl. Fac. Auth. RB, 5.00%, 7/01/29, MBIA</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,579,890</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Maryland&#151;1.8%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Frederick Cnty. ST, Urbana Cmnty. Dev. Auth. Proj., Ser. A, 5.95%, 7/01/30</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/07 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,053,040</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hlth. &amp; Higher Edl. Facs. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,240</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Medstar Hlth. Proj., 5.50%, 8/15/33</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,332,019</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Union Hosp. of Cecil Cnty. Proj., 5.625%, 7/01/32</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,055,650</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,440,709</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Mississippi&#151;1.7%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,950</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Lowndes Cnty. Sld. Wst. Disp., PCR RB, Weyerhaeuser Co. Proj., Ser. A, 6.80%, 4/01/22</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,987,767</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Missouri&#151;1.8%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dept. of Transp. RB, Rt. 370/Missouri Bottom Rd./Taussig Rd. Proj., 7.20%, 5/01/33</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,376,920</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Multi-State&#151;3.7%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust,</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,000</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.75%, 4/30/15</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,060,610</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,500</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 6.00%, 4/30/19</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,739,995</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.00%, 4/30/15</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,239,850</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,000</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.30%, 4/30/19</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,207,870</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">13,248,325</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Nevada&#151;0.8%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,830</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Henderson Local Impvt. Dist. No. T-14 SA, 5.80%, 3/01/23</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">09/06 @ 103</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,925,484</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">New Jersey&#151;12.4%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Econ. Dev. Auth.,</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Cigarette Tax Rev. RB, 5.50%, 6/15/31</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,483,660</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Cigarette Tax Rev. RB, 5.75%, 6/15/34</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,268,800</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,100</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Continental Airlines, Inc. Proj. RB, 7.20%, 11/15/30</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/10 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,214,130</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,475</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kapkowski Rd. Landfill Proj. SA, 6.50%, 4/01/28</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,985,623</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kapkowski Rd. Landfill Proj. RB, 6.50%, 4/01/31</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">11,689,400</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">44,641,613</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">New Mexico&#151;1.3%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,200</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hsg. Auth., Region III RB, Villa Delaware Oso Apts. Proj., Ser. A, 6.00%, 1/01/38</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,825,548</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">New York&#151;11.1%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">985</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Albany Indl. Dev. Agcy. RB, New Covenant Charter Sch. Proj., Ser. A, 7.00%, 5/01/35</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/15 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">937,809</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,845</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Env. Facs. Corp., St. Clean Wtr. &amp; Drinking Wtr. RB, NYC Mun. Wtr. Proj.,</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.00%, 6/15/31</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,974,163</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">14,065</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Liberty Dev. Corp. Proj. RB, 5.25%, 10/01/35</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">15,955,617</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,775</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Met. Transp. Auth. Svc. Contract RB, Ser. A, 5.00%, 7/01/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,938,948</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,700</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Indl. Dev. Agcy. RB, American Airlines, JFK Intl. Arpt. Proj., 7.75%, 8/01/31</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/16 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,217,776</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Caa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,800</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Port Auth. of NY &amp; NJ RB, Contl./Eastn. LaGuardia Proj., 9.00%, 12/01/10</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">03/06 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,869,256</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">39,893,569</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">North Carolina&#151;2.2%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Gaston Cnty. Indl. Facs. &amp; Poll. Ctrl. Fin. Auth. RB, 5.75%, 8/01/35</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,899,075</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Ohio&#151;4.0%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,140</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Air Qual. Dev. Auth. RB, 4.80%, 1/01/34, FGIC</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,339,435</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,800</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Wtr. Dev. Auth., Poll. Ctrl. Facs. RB, Dayton Pwr. &amp; Lt. Proj., Ser. A, 4.80%, 1/01/34, FGIC</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,868,208</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">14,207,643</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Oklahoma&#151;1.2%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,925</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tulsa Mun. Arpt. Trust RB, Ser. A, 7.75%, 6/01/35</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,219,493</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Pennsylvania&#151;6.2%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Econ. Dev. Fin. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,175</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Amtrak Proj., Ser. A, 6.375%, 11/01/41</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,561,728</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,565</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Exempt Facs., Reliant Energy Conv. Proj., Ser. A, 6.75%, 12/01/36</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/09 @ 103</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">11,303,388</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Monroe Cnty. Hosp. Auth. RB, Hosp. Pocono Med. Ctr. Proj., 6.00%, 1/01/43</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,326,850</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">22,191,966</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">23</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="8%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="5%" align=center>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
            </center></TD>
        <TD width="5%">&nbsp;
        </TD>
        <TD width="57%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="11%" align=left>&nbsp;

        </TD>
        <TD width="6%">&nbsp;
        </TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="5%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
            </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">South Carolina&#151;6.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Greenwood Cnty. Hosp. RB, Self Mem. Hosp. Facs. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3,280</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.50%, 10/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/11 @ 100 </FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">3,426,944</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.50%, 10/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">3,395,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Jobs Econ. Dev. Auth. Hosp. Facs. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Georgetown Mem. Hosp. Proj., 5.375%, 2/01/30, RAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">3,940,763</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,450</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Palmetto Hlth. Proj., 6.875%, 8/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">5,310,585</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">550</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Palmetto Hlth. Proj., 6.875%, 8/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">636,020</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,640</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Palmetto Hlth. Alliance Proj., Ser. A, 6.25%, 8/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">2,876,227</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,864</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Lancaster Cnty. Assmt. RB, Edgewater Impvt. Dist., Ser. A, 6.875%, 11/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">3,946,149</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">23,532,288</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Tennessee&#151;2.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">20,405</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Knox Cnty. Hlth. Edl. &amp; Hsg. Facs. Brd., Hosp. Facs. RB, Ser. A, Zero Coupon, 1/01/21, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/13 @ 63.44</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">9,283,051</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Texas&#151;16.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,650</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Brazos River Auth., PCR RB, TXU Elec. Co. Proj., Ser. C, 6.75%, 10/01/38</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">1,818,746</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,015</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dallas Area Rapid Trans. RB, 5.00%, 12/01/31, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">2,082,885</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">20,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Gulf Coast Wst. Disp. Auth., Env. Impvt. RB, Ser. A, 6.10%, 8/01/24</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">21,204,200</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">25,375</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Harris Cnty. Houston Sports Auth. RB, Ser. A-3, Zero Coupon, 11/15/36, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/24 @ 49.423</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">5,026,026</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tpke. Auth., Central Sys. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">73,370</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 8/15/36, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 24.171</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">13,282,905</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">65,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 8/15/37, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 22.708</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">11,057,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">27,600</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 8/15/38, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 21.384</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">4,421,520</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">58,894,082</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Virginia&#151;6.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">13,190</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Alexandria Redev. &amp; Hsg. Auth. RB, 3001 Park Ctr. Apts. Proj., Ser. A, 6.375%, 4/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/08 @ 103</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">12,762,776</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Halifax Cnty. Indl. Dev. Auth., Exempt Fac. RB, Old Dominion Elec. Coop. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.625%, 6/01/28, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">9,760,050</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">22,522,826</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">West Virginia&#151;1.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,115</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Econ. Dev. Auth. RB, Correctional Juvenile Safety Proj., Ser. A, 5.00%, 6/01/29, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">1,173,370</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Mason Cnty., PCR RB, Appalachian Pwr. Co. Proj., Ser. L, 5.50%, 10/01/22</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">5,149,550</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">6,322,920</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Wisconsin&#151;3.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hlth. &amp; Edl. Facs. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,930</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Aurora Hlth. Care Proj., 6.40%, 4/15/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">4,362,496</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Wheaton Franciscan Svcs. Proj., 5.75%, 8/15/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">02/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">5,331,650</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,140</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Pub. Pwr., Inc. Sys. RB, Ser. A, 5.00%, 7/01/37, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">1,193,580</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">10,887,726</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;483,229,916)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">521,275,677</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD colspan=10>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">SHORT-TERM INVESTMENTS&#151;10.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">California&#151;0.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">75</FONT><SUP><FONT size=1 face="serif">8</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hlth. Facs. Fin. Auth. RB, Scripps Hlth. Proj., Ser. B, 2.83%, 3/01/06, MBIA, FRWD</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">75,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">New York&#151;2.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-1+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,000</FONT><SUP><FONT size=1 face="serif">8</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Triborough Brdg. &amp; Tunl. Auth. RB, Ser. B2, 3.20%, 3/02/06, FRWD</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">10,000,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">24</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=2% align=right>&nbsp;</TD>
  <TD width=2% align=right>&nbsp;</TD>
  <TD width=3% align=right>&nbsp;</TD>
        <TD width=4% align=right>
      <center>
        <B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
            </center></TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=78% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <B><FONT size=2
face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Description</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
            </center></TD>
</TR>
<TR>
  <TD><HR noshade size=1></TD>
  <TD><HR noshade size=1></TD>
  <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Money Market Funds&#151;8.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">17,900</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">AIM Tax Free Investment Co. Cash Reserve Portfolio</FONT>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif"> 17,900,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">10,850</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">SSgA Tax Free Money Mkt. Fund</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,850,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><hr size="1" noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">28,750,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><hr size="1" noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Short-Term Investments (cost &#36;38,825,000)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">38,825,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><hr size="1" noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;156.0% (cost &#36;522,054,916</FONT></B><B><SUP><FONT size=1 face="serif">9</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif"> 560,100,677</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.3%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,509,859</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(57.3)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <FONT size=1 face="serif">(205,632,089)</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD><hr size="1" noshade></TD>
  <TD align=right><hr size="1" noshade>    </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif"> 358,978,447</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>       </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<P>
<SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">Security is collateralized by U.S. Treasury obligations.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Security is deemed to be of investment grade quality by the investment advisor.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">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 28, 2006, the Trust held 4.4% of its net assets, with a current market value of &#36;15,758,141, in securities restricted as to resale.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6 </FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">7 </FONT></SUP><FONT size=1 face="serif">Security, or a portion thereof, pledged as collateral with a value of &#36;2,743,015 on 391 short U.S. Treasury Note futures contracts expiring June 2006 and 527 short U.S.
Treasury Bond futures contracts expiring June 2006. The notional value of such contracts on February 28, 2006 was &#36;101,791,750, with an unrealized loss of &#36;349,820.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">8 </FONT></SUP><FONT size=1 face="serif">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. Rate shown is rate as of February 28, 2006.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">9 </FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;522,003,687. The net unrealized appreciation on a tax basis is &#36;38,096,990, consisting of &#36;38,768,530 gross unrealized
appreciation and &#36;671,540 gross unrealized depreciation.</FONT></P>
<div style="border:1px solid #000000; padding:5px">
  <p></p>
  <p align="center"> <b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b></p>
  <table width="90%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">ACA</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; American Capital
          Access</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">PCR</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Pollution Control
          Revenue</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">ETM</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Escrowed to
          Maturity</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">RAA</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Radian Asset
          Assurance</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Revenue Bonds</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FRWD</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Floating Rate
          Weekly Demand</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">SA</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Special Assessment</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">ST</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Special Tax</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">TA</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Tax Allocation</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td align=left>&nbsp;</td>
    </tr>
  </table>
  </div>
<P><BR>
</P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">25</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">PORTFOLIO OF INVESTMENTS (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock California Insured Municipal Income Trust (BCK)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="8%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="6%" align=left>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
            </center></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="56%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="11%" align=left>&nbsp;

        </TD>
        <TD width="7%">&nbsp;
        </TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="5%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
            </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;153.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">California&#151;153.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Benicia Unified Sch. Dist., GO, Ser. B, Zero Coupon, 8/01/23, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call </FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">3,025,880</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">California St. GO, 5.00%, 6/01/31, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">4,205,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Ceres Unified Sch. Dist., GO,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,055</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/30, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 34.887</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">785,349</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,180</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/31, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 32.868</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">771,150</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,300</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/32, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 30.966</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">752,994</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,440</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/33, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 29.174</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">738,568</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,575</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/34, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 27.782</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">728,192</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,275</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/35, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 26.186</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">628,767</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dept. of Wtr. Res., Pwr. Sply. RB., Ser. A, 5.25%, 5/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">7,170,085</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,385</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Edl. Facs. Auth. RB, Scripps Coll. Proj., 5.00%, 8/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">2,475,248</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,500</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Infrastructure &amp; Econ. Dev. RB, Rand Corp. Proj., Ser. A, 5.25%, 4/01/42, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">4,743,585</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,600</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Kaweah Delta Hlth. Care Dist. RB, 6.00%, 8/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">2,825,212</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Long Beach Unified Sch. Dist., GO, Ser. D, 5.00%, 8/01/31, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/10 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">2,080,580</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Los Angeles Dept. of Wtr. &amp; Pwr., Wtr. Wks. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 7/01/43, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">5,183,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.125%, 7/01/41, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">5,199,100</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Los Angeles Unified Sch. Dist. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Election 2004, Ser. F, 5.00%, 7/01/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">4,248,440</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. E, 5.125%, 1/01/27, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">5,325,850</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Los Angeles Wstwtr. Sys. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 6/01/27, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">5,250,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,025</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 6/01/32, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">6,280,219</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">No. California Pwr. Agcy., Pub. Pwr. RB, Hydroelec. Proj. 1, Ser. A, 5.00%, 7/01/28, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/08 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">5,155,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">No. Orange Cnty. Cmnty. Coll. Dist., GO, Ser. A, 5.00%, 8/01/12, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">2,702,175</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Pub. Wks. Brd. RB, Dept. of Gen. Svcs., Ser. A, 5.00%, 12/01/27, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">5,236,100</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Riverside Unified Sch. Dist., GO, Ser. A, 5.00%, 2/01/27, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">02/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">5,255,950</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Diego Cmnty. Coll., GO, 5.00%, 5/01/30, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">4,225,480</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,295</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Diego Cnty. Wtr. Auth., COP, Ser. A, 5.00%, 5/01/32, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">5,531,051</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,805</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Diego Redev. Agcy. TA, Ctr. City Proj., Ser. A, 5.00%, 9/01/28, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">09/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">5,015,651</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Diego Univ. Fndtn. Aux. Org. RB, Ser. A, 5.00%, 3/01/37, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">03/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">4,140,160</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">20,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Joaquin Hills Transp. Corridor Agcy., Toll Rd. RB, Ser. A, Zero Coupon, 1/15/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">6,299,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Jose Fin. Auth. RB, Civic Ctr. Proj., Ser. B, 5.00%, 6/01/37, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">6,200,940</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">11,125</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Santa Rosa Wstwtr. RB, Ser. B, Zero Coupon, 9/01/27, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">4,185,559</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tustin Unified Sch. Dist., ST, Cmnty. Facs. Dist. 97-1, Ser. A, 5.00%, 9/01/38, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">09/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">3,104,130</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Westlands Wtr. Dist., COP, 5.00%, 9/01/34, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">09/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">4,169,960</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;116,761,620)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">123,640,475</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD>&nbsp;

        </TD>
    <TD>&nbsp;</TD>
    <TD><hr noshade size=1></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="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD></TD>
        <TD>
        </TD>
</TR>
<TR>
        <TD colspan=10>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;2.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,150</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">AIM Tax Free Investment Co. Cash Reserve Portfolio (cost &#36;2,150,000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">2,150,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;156.0% (cost &#36;118,911,620</FONT></B><B><SUP><FONT size=1 face="serif">5</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">125,790,475</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.7%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">1,331,785</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(57.7)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">(46,502,681)</FONT></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>    </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">80,619,579</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD><hr noshade size=3>    </TD>
        <TD>
      <hr noshade size=3>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">26</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock California Insured Municipal Income Trust (BCK) (continued)</FONT></B></P>
<P>&nbsp;</P>
<hr size="1" noshade>

<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<P>
<SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Security, or a portion thereof, pledged as collateral with a value of &#36;860,804 on 101 short U.S. Treasury Note futures contracts expiring June 2006 and 136 short U.S.
Treasury Bond futures contracts expiring June 2006. The notional value of such contracts on February 28, 2006 was &#36;26,279,281, with an unrealized loss of &#36;90,299.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;118,912,138. The net unrealized appreciation on a tax basis is &#36;6,878,337, consisting of &#36;6,878,337 gross unrealized
appreciation and &#36;0 gross unrealized depreciation.</FONT></P>
<P>
<FONT size=1 face="serif">The value (market value plus accrued interest) of securities that are covered by insurance, which ensures the payment of principal and interest, represent approximately 88.7% of the Trust&#146;s managed assets. The Trust
had the following insurance concentrations:</FONT></P>
<TABLE width="10%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=41% align=left nowrap>
<FONT size=1 face="serif">AMBAC</FONT>&nbsp;
        </TD>
        <TD width=7% nowrap>&nbsp;
        </TD>
        <TD width=11% align=right nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=8% nowrap>&nbsp;
        </TD>
        <TD width=29% align=left nowrap>
<FONT size=1 face="serif">19.6%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=41% align=left nowrap>
<FONT size=1 face="serif">FGIC</FONT>&nbsp;
        </TD>
        <TD width=7% nowrap>&nbsp;
        </TD>
        <TD width=11% align=right nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=8% nowrap>&nbsp;
        </TD>
        <TD width=29% align=left nowrap>
<FONT size=1 face="serif">20.8%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=41% align=left nowrap>
<FONT size=1 face="serif">FSA</FONT>&nbsp;
        </TD>
        <TD width=7% nowrap>&nbsp;
        </TD>
        <TD width=11% align=right nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=8% nowrap>&nbsp;
        </TD>
        <TD width=29% align=left nowrap>
<FONT size=1 face="serif">7.5%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=41% align=left nowrap>
<FONT size=1 face="serif">MBIA</FONT>&nbsp;
        </TD>
        <TD width=7% nowrap>&nbsp;
        </TD>
        <TD width=11% align=right nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=8% nowrap>&nbsp;
        </TD>
        <TD width=29% align=left nowrap>
<FONT size=1 face="serif">39.1%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=41% align=left nowrap>
<FONT size=1 face="serif">Other</FONT>&nbsp;
        </TD>
        <TD width=7% nowrap>&nbsp;
        </TD>
        <TD width=11% align=right nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=8% nowrap>&nbsp;
        </TD>
        <TD width=29% align=left nowrap>
<FONT size=1 face="serif">1.7%</FONT>&nbsp;
        </TD>
</TR>
</TABLE><p>&nbsp;</p>
<div style="border:1px solid #000000; padding:5px">
  <p></p>

  <p align="center"> <b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b></p>
  <table width="90%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">COP</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Certificate
          of Participation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">ST</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Special Tax</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">TA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Tax Allocation</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
    </tr>
  </table>
  </div>
<p><BR>
</p>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">27</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">PORTFOLIO OF INVESTMENTS (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock California Municipal Bond Trust (BZA)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=8% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=center>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
    </center></TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=57% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=12% align=left>&nbsp;

        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=1%>&nbsp;</TD>
        <TD width=5% align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;151.9%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">California&#151;142.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">&#36; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Anaheim Pub. Fin. Auth. RB, Pub. Impvt. Proj., Ser. C, Zero Coupon, 9/01/32, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call </FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,452,700</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,175</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Chula Vista Indl. Dev. RB., 5.00%, 12/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/15 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,213,963</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Edl. Facs. Auth. RB, Univ. of San Diego Proj., Ser. A, 5.25%, 10/01/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,215,560</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,845</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Foothill/Eastn. Transp. Corridor Agcy. Toll Road RB, 5.75%, 1/15/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/10 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,929,167</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Golden St. Tobacco Sec. Corp. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 6/01/45</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,076,470</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-1, 6.625%, 6/01/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,234,000</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-1, 6.75%, 6/01/39</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,124,600</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.50%, 6/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,775,150</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,300</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.625%, 6/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,453,296</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,270</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hlth. Facs. Fin. Auth. RB, Insured Hlth. Facs., Valleycare Proj., Ser. A,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.375%, 5/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,469,208</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Infrastructure &amp; Econ. Dev. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 6/01/07, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,100,530</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,600</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Bay Area Toll Brdgs., Ser. A, 5.00%, 7/01/36, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,674,896</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,750</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">J. David Gladstone Inst. Proj., 5.25%, 10/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,858,975</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,600</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Rand Corp. Proj., Ser. A, 5.25%, 4/01/42, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,689,455</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,745</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Kaweah Delta Hlth. Care Dist. RB, 6.00%, 8/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,896,152</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Lathrop Fin. Auth. RB, Wtr. Sply. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">655</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.90%, 6/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">693,363</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,180</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.00%, 6/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,255,850</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Live Oak Unified Sch. Dist., Cap. Apprec. Election, GO,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">705</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/29, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/18 @ 55.976</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">212,508</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">795</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/30, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/18 @ 52.942</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">226,098</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">830</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/31, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/18 @ 50.064</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">223,760</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">865</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/32, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/18 @ 47.332</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">219,935</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">905</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/33, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/18 @ 44.74</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">216,983</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">945</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 8/01/34, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/18 @ 42.283</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">213,872</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Los Angeles Regl. Arpt. Impvt. RB, Amer. Airlines, Inc. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 7.50%, 12/01/24</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/12 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,051,670</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">680</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, 7.50%, 12/01/24</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/12 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">715,136</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Multi-Fam. Hsg. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Aa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,210</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">San Lucas Apts. Proj., Ser. 5, 5.95%, 11/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,310,025</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Aa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,380</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Westgate Courtyard Apts. Proj., Ser. 3, 5.80%, 11/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,486,029</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,400</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Orange Cnty. Cmnty. Facs. Dist., ST, Ladera Ranch Proj., Ser. A, 6.00%, 8/15/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,674,176</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Palm Springs Mobile Home Park RB, Sahara Mobile Home Park Proj., 5.75%, 5/15/37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/12 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,174,420</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">530</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Poll. Ctrl. Sld. Wst. RB, Wst. Mgmt., Inc. Proj., Ser. A-2, 5.40%, 4/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/15 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">559,055</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Francisco City &amp; Cnty. Redev. Agcy. RB, Cmnty. Facs. Dist., Mission Bay South Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.25%, 8/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,656,875</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">15,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Santa Ana Unified Sch. Dist., COP, Zero Coupon, 4/01/29, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,180,850</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Santa Clara Valley Wtr. Dist., Wtr. Util. Sys. RB, Ser. A, 5.125%, 6/01/31, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/10 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,592,825</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Statewide Cmnty. Dev. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Daughters of Charity Hlth. Proj., Ser. A, 5.25%, 7/01/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,557,030</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kaiser Permanente Proj., Ser. A, 5.50%, 11/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,275,850</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,250</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sutter Hlth. Oblig. Grp. Proj., Ser. B, 5.625%, 8/15/42</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,422,900</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Torrance Hosp. RB, Torrance Mem. Med. Ctr. Proj., Ser. A, 5.50%, 6/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,570,785</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">77,654,117</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Multi-State&#151;7.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,500</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,969,770</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Puerto Rico&#151;1.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">955</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hwy. &amp; Trans. Auth. RB, 5.00%, 7/01/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">980,728</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;75,823,471)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">82,604,615</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">28</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock California Municipal Bond Trust (BZA) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=2% align=right>&nbsp;</TD>
  <TD width=2% align=right>&nbsp;</TD>
  <TD width=2% align=right>&nbsp;</TD>
        <TD width=4% align=right>
      <center>
        <B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
            </center></TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=79% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
            </center></TD>
</TR>
<TR>
  <TD><HR noshade size=1></TD>
  <TD><HR noshade size=1></TD>
  <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;1.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">650</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">AIM Tax Free Investment Co. Cash Reserve Portfolio (cost &#36;650,000)</FONT>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif"> 650,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;153.1% (cost &#36;76,473,471</FONT></B><B><SUP><FONT size=1 face="serif">6</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif"> 83,254,615</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;2.0%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,091,599</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(55.1)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">(29,979,435)</FONT>
        </TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif"> 54,366,779</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>       </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<P>
<SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Security, or a portion thereof, pledged as collateral with a value of &#36;538,003 on 60 short U.S. Treasury Note futures contracts expiring June 2006 and 81 short U.S. Treasury
Bond futures contracts expiring June 2006. The notional value of such contracts on February 28, 2006 was &#36;15,634,969, with an unrealized loss of &#36;53,881.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">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 28, 2006, the Trust held 7.3% of its net assets, with a current market value of &#36;3,969,770, in securities restricted as to resale.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6 </FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;76,466,832. The net unrealized appreciation on a tax basis is &#36;6,787,783, consisting of &#36;6,791,831 gross unrealized
appreciation and &#36;4,048 gross unrealized depreciation.</FONT></P>
<div style="border:1px solid #000000; padding:5px">
  <p></p>
  <p align="center"><b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b></p>
  <table width="90%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">COP</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Certificate
          of Participation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">ST</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Special Tax</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">XLCA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; XL Capital Assurance</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
    </tr>
  </table>
  </div>
<P align="center"><BR>
</P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">29</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">PORTFOLIO OF INVESTMENTS (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock California Municipal Income Trust II (BCL)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=8% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=6% align=center>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
    </center></TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=59% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=11% align=left>&nbsp;

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=1%>&nbsp;</TD>
        <TD width=6% align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR>
        <TD colspan=10>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;155.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">California&#151;152.2%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Anaheim Pub. Fin. Auth. RB, Pub. Impvt. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, Zero Coupon, 9/01/34, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call </FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;&nbsp;</FONT></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,936,900</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, Zero Coupon, 9/01/36, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,389,400</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">California, GO, 5.50%, 11/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,823,520</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,020</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Chula Vista Indl. Dev. RB, 5.00%, 12/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/15 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,186,463</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Corona Norco Unified Sch. Dist., ST, Cmnty. Facs. Dist. No. 98-1,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.10%, 9/01/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">09/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,245,340</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
            </div></TD>
        <TD><SUP><FONT size=1 face="serif">,4</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dept. of Wtr. Res., Pwr. Sply. RB, Ser. A, 5.375%, 5/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,659,760</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">East Bay Mun. Util. Dist. Wtr. Sys. RB, Ser. A, 5.00%, 6/01/35, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,272,150</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Foothill/Eastn. Transp. Corridor Agcy. Toll Rd. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,550</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 1/15/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/10 @ 30.966</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,630,164</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">15,470</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 1/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">ETM</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,308,202</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,890</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 1/01/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">ETM</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,614,140</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Golden St. Tobacco Sec. Corp. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 6/01/45</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,076,470</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,900</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-1, 6.625%, 6/01/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,239,300</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">11,100</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A-1, 6.75%, 6/01/39</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">12,483,060</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,650</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.50%, 6/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,271,839</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.625%, 6/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,353,760</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hlth. Facs. Fin. Auth. RB, Rand Corp. Proj., Ser. A, 5.25%, 4/01/42, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,635,325</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Infrastructure &amp; Econ. Dev. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,100</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Bay Area Toll Brdgs., Ser. A, 5.00%, 7/01/36, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,385,541</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,735</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kaiser Hosp. Asst. LLC Proj., Ser. A, 5.55%, 8/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/11 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,845,276</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">La Quinta Redev. Agcy. TA, Redev. Area No. 1 Proj., 5.125%, 9/01/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">09/12 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,283,650</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Los Angeles Dept. of Wtr. &amp; Pwr. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sys. 5.00%, 7/01/35, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,581,435</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Wtr. Wks. Ser. A, 5.125%, 7/01/41, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,719,010</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,785</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Los Angeles Regl. Arpt. Impvt., Corp. Lease RB, Amer. Airlines, Inc. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, 7.50%, 12/01/24</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/12 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,877,231</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Los Angeles Unified Sch. Dist., Election of 2004, Ser. F, 5.00%, 7/01/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,124,220</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Mobilehome Park Fin. Auth. RB, Palomar Estates East &amp; West Proj., Ser. A, 5.25%, 3/15/34, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">03/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,624,670</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Oxnard Impvt. Bond, Dist. No. 1 SA, 1 Rice Ave. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,910</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.625%, 9/02/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">09/06 @ 103</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,949,499</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,905</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.70%, 9/02/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">09/06 @ 103</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,918,735</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,180</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Poll. Ctrl. Sld. Wst. RB, Wst. Mgmt., Inc. Proj., Ser. A-2, 5.40%, 4/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/15 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,244,688</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Poway Unified Sch. Dist., ST, Cmnty. Facs. Dist. No. 6 Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.50%, 9/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">09/10 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,531,890</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,700</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.60%, 9/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">09/10 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,736,839</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,470</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Rohnert Park Fin. Auth. RB, Rancho Feliz Mobile Home Park Proj., Ser. A, 5.625%, 9/15/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">09/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,519,252</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Sacramento City Fin. Auth. RB, Cap. Impvt., Ser. A, 5.00%, 12/01/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,361,200</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Bernardino Cnty., ST Cmnty. Facs., 5.90%, 9/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">09/12 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,376,380</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,665</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Diego Unified Sch. Dist., GO, Ser. D, 5.25%, 7/01/23, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,489,388</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Francisco City &amp; Cnty. Redev. Agcy. Cmnty. Facs. Dist. ST, Mission Bay South Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.25%, 8/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,313,750</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">30,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">San Joaquin Hills Transp. Corridor Agcy. RB, Toll Rd. Proj., Ser. A,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 1/15/34, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,109,300</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Santa Clarita Facs. Dist. ST, Valencia Town Ctr. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,640</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.80%, 11/15/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/10 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,688,019</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.85%, 11/15/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/10 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,544,685</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,685</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Santa Rosa Wstwtr. RB, Ser. B, Zero Coupon, 9/01/25, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,119,108</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,200</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">So. Tahoe Joint Pwr. Fin. Auth. RB, So. Tahoe Redev. Proj. 1-A, 5.45%, 10/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,278,540</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Statewide Cmnty. Dev. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kaiser Permanente Proj., Ser. A, 5.50%, 11/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,275,850</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Mem. Hlth. Svcs. Proj., Ser. A, 5.50%, 10/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,406,980</FONT>&nbsp;
            </div></TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">30</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock California Municipal Income Trust II (BCL) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=8% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
    </center></TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=51% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=12% align=left>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=1% align=left>

          <div align="left"></div></TD>
        <TD width=6% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
            </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">California&#151;(continued)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">&#36; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sutter Hlth. Oblig Corp. Proj., Ser. B, 5.50%, 8/15/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=right>
<FONT size=1 face="serif">8,415,920</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,600</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tobacco Sec. Auth. So. California, Tobacco Settlement RB, Ser. A, 5.625%, 6/01/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,642,304</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tustin Unified Sch. Dist., ST, Cmnty. Facs. Dist. 97-1 Proj., Ser. B, 5.60%, 9/01/29</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">09/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,032,320</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Univ. of California RB, Ser. A, 5.00%, 5/15/33, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,086,780</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,170</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Val Verde Unified Sch. Dist. Fin. Auth., ST, 6.25%, 10/01/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,232,560</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Vernon Elec. Sys. RB, Malburg Generating Station Proj., 5.50%, 4/01/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,086,780</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">189,927,593</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Multi-State&#151;3.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">500</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.75%, 4/30/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">530,305</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,000</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 6.00%, 4/30/19</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,068,570</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,500</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.00%, 4/30/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,571,955</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,000</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.30%, 4/30/19</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,069,290</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">4,240,120</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;177,871,844)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">194,167,713</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD>&nbsp;

        </TD>
    <TD>&nbsp;</TD>
    <TD><hr align="right" 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>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="left"></div></TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;0.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">350</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">AIM Tax Free Investment Co. Cash Reserve Portfolio (cost &#36;350,000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">350,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;155.9% (cost &#36;178,221,844</FONT></B><B><SUP><FONT size=1 face="serif">7</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=right>
<FONT size=1 face="serif">194,517,713</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.8%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,228,107</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(57.7)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">(71,982,576)</FONT></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=right>
<FONT size=1 face="serif">124,763,244</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>       </TD>
        <TD>
      <hr noshade size=3>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<P>
<SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Security, or a portion thereof, pledged as collateral with a value of &#36;1,127,877 on 165 short U.S. Treasury Note futures contracts expiring June 2006 and 220 short U.S.
Treasury Bond futures contracts expiring June 2006. The notional value of such contracts on February 28, 2006 was &#36;42,685,156, with an unrealized loss of &#36;146,759.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">Security is collateralized by U.S. Treasury obligations.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6 </FONT></SUP><FONT size=1 face="serif">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 28, 2006, the Trust held 3.4% of its net assets, with a current market value of &#36;4,240,120, in securities restricted as to resale.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">7 </FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;178,203,743. The net unrealized appreciation on a tax basis is &#36;16,313,970, consisting of &#36;16,313,970 gross unrealized
appreciation and &#36;0 gross unrealized depreciation.</FONT></P>
<div style="border:1px solid #000000; padding:5px">
  <p></p>
  <p align="center"><b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b></p>
  <table width="90%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">ACA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; American Capital
          Access</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Revenue Bonds</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">ETM</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Escrowed to
          Maturity</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">SA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Special Assessment</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">ST</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Special Tax</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">TA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Tax Allocation</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
    </tr>
  </table>
  </div>
<P align="center"><BR>
</P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">31</FONT></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>

<B><FONT face="serif">PORTFOLIO OF INVESTMENTS (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock Florida Insured Municipal Income Trust (BAF)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=8% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=6% align=left>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
            </center></TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=57% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=11% align=left>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=1% align=left>

          <div align="left"></div></TD>
        <TD width=5% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
            </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD colspan=10>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;155.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Florida&#151;147.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Brd. of Ed.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">GO, Ser. A, 5.00%, 6/01/27, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=right>
<FONT size=1 face="serif">9,468,090</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,640</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Lottery RB, Ser. C, 5.00%, 1/01/22, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">9,179,482</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Capital Trust Agcy. Multi-Fam. RB, American Oppty. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.875%, 6/01/38</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">975,470</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Ba1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">990</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. C, 7.25%, 6/01/38</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">959,775</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,885</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Colonial Cntry. Club Cmnty. Dev. Dist. RB, 6.40%, 5/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">4,153,104</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dept. of Transp., GO, 5.00%, 7/01/27, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">7,322,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,695</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Gainesville Util. Sys. RB, Ser. A, 5.00%, 10/01/33, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">9,090,536</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Highlands Cnty. Hlth. Facs. Auth. RB, Hosp. Adventist/Sunbelt Proj., Ser. A, 6.00%, 11/15/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">9,235,760</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,580</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hillsborough Cnty. Sch. Brd., COP, Ser. A, 5.00%, 7/01/25, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/10 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">7,847,271</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,865</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Jacksonville Cap. Impvt. RB, Ser. A, 5.00%, 10/01/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,970,432</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Jacksonville RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.00%, 10/01/26, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">8,392,400</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 10/01/27, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">10,020,125</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Transp. 5.00%, 10/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">9,864,515</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,480</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Julington Creek Plantation Cmnty. Dev., SA, 5.00%, 5/01/29, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,552,490</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Lake Cnty. Sch. Brd., COP, Ser. A, 5.00%, 7/01/28, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">9,438,030</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Miami Dade Cnty., RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 10/01/39, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/15 @ 28.762</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,790,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 10/01/40, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/15 @ 27.307</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,696,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">26,935</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 10/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/08 @ 28.079</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">6,890,512</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Orange Cnty.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,975</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">RB, Ser. B, 5.125%, 1/01/32, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">8,427,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">RB, 5.125%, 10/01/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">9,785,760</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sch. Brd., COP, Ser. A, 5.00%, 8/01/27, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,087,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Osceola Cnty. Sch. Brd., COP, Ser. A, 5.25%, 6/01/27, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">4,291,080</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Palm Bay Util. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,015</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 10/01/28, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,388,066</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,570</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Zero Coupon, 10/01/31, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,643,261</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Palm Beach Cnty. Sch. Brd., COP, Ser. D, 5.00%, 8/01/28, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">9,593,852</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Pinellas Cnty. Hlth. Fac. Auth. RB, Baycare Hlth. Sys. Proj., 5.50%, 11/15/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,291,650</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Pinellas Cnty. Swr. RB, 5.00%, 10/01/32, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">9,944,600</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Polk Cnty. Util. Sys. RB, 5.00%, 10/01/29, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,253,850</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">825</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Port St. Lucie Util. RB, 5.125%, 9/01/11, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">885,934</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,945</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Sarasota Cnty. Util. Sys. RB, Ser. C, 5.25%, 10/01/22, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">3,171,853</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">St. Petersburg Pub. Util. RB, Ser. A, 5.00%, 10/01/28, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/09 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">3,625,720</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tohopekaliga Wtr. Auth. RB, Ser. B, 5.00%, 10/01/23, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,059,420</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,145</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Vlg. Cmnty. Dev. Dist. Assmt., No. 5, Spl. Assmt. SA, Ser. A, 6.50%, 5/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">4,452,642</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">13,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Vlg. Ctr. Cmnty. Dev. Dist. RB, Ser. A, 5.00%, 11/01/32, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">14,057,550</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">195,809,230</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Puerto Rico&#151;7.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9,405</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Children&#146;s Trust Fund Tobacco Settlement RB, 5.625%, 5/15/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">9,712,638</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;196,337,055)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">205,521,868</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">32</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Florida Insured Municipal Income Trust (BAF) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=3% align=right>&nbsp;</TD>
  <TD width=1% align=right>&nbsp;</TD>
  <TD width=3% align=right>&nbsp;</TD>
        <TD width=6% align=right>
      <center>
        <B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
            </center></TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=63% align=left>&nbsp;

        </TD>
        <TD width=13%>&nbsp;
        </TD>
        <TD width=1%>&nbsp;</TD>
        <TD width=5% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
            </center></TD>
</TR>
<TR>
  <TD><HR noshade size=1></TD>
  <TD><HR noshade size=1></TD>
  <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;0.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">550</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">AIM Tax Free Investment Co. Cash Reserve Portfolio (cost &#36;550,000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif"> 550,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;155.4% (cost &#36;196,887,055</FONT></B><B><SUP><FONT size=1 face="serif">6</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif"> 206,071,868</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.9%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">2,563,196</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(57.3)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">(76,005,624)</FONT>
        </TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif"> 132,629,440</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><hr noshade size=3>    </TD>
        <TD>
      <hr noshade size=3>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<P>
<SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">Security, or a portion thereof, pledged as collateral with a value of &#36;1,070,773 on 141 short U.S. Treasury Note futures contracts expiring June 2006 and 190 short U.S.
Treasury bond futures contracts expiring June 2006. The notional value of such contracts on February 28, 2006 was &#36;36,702,594, with an unrealized loss of &#36;126,222.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">Security is deemed to be of investment grade quality by the investment advisor.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6 </FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;196,886,986. The net unrealized appreciation on a tax basis is &#36;9,184,882, consisting of &#36;9,221,862 gross unrealized
appreciation and &#36;36,980 gross unrealized depreciation.</FONT></P>
<P>
<FONT size=1 face="serif">The value (market value plus accrued interest) of securities that are covered by insurance, which ensures the payment of principal and interest, represent approximately 83.2% of the Trust&#146;s managed assets. The Trust
had the following insurance concentrations:</FONT></P>
<TABLE border=0 align="center" cellspacing=0 cellpadding=0>
<TR valign="bottom">
        <TD width=41% align=left nowrap>
<FONT size=1 face="serif">AMBAC</FONT>&nbsp;
        </TD>
        <TD width=11% align=right nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=8% nowrap>&nbsp;
        </TD>
        <TD width=29% align=left nowrap>
<FONT size=1 face="serif">17.0%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=41% align=left nowrap>
<FONT size=1 face="serif">FGIC</FONT>&nbsp;
        </TD>
        <TD width=11% align=right nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=8% nowrap>&nbsp;
        </TD>
        <TD width=29% align=left nowrap>
<FONT size=1 face="serif">9.6%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=41% align=left nowrap>
<FONT size=1 face="serif">FSA</FONT>&nbsp;
        </TD>
        <TD width=11% align=right nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=8% nowrap>&nbsp;
        </TD>
        <TD width=29% align=left nowrap>
<FONT size=1 face="serif">24.3%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=41% align=left nowrap>
<FONT size=1 face="serif">MBIA</FONT>&nbsp;
        </TD>
        <TD width=11% align=right nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=8% nowrap>&nbsp;
        </TD>
        <TD width=29% align=left nowrap>
<FONT size=1 face="serif">32.0%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=41% align=left nowrap>
<FONT size=1 face="serif">Other</FONT>&nbsp;
        </TD>
        <TD width=11% align=right nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=8% nowrap>&nbsp;
        </TD>
        <TD width=29% align=left nowrap>
<FONT size=1 face="serif">0.3%</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<p>
</p>
<div style="border:1px solid #000000; padding:5px">
  <p align="center"> <b><font size=2 face="serif"><br>
    <br>
  KEY TO ABBREVIATIONS</font></b></p>
    <table width="90%" border=0 align="center" cellpadding=0 cellspacing=0>
      <tr valign="bottom">
        <td align=left> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
        <td>&nbsp; </td>
        <td align=left> <font size=2 face="serif">&#151; American Municipal
            Bond Assurance Corp.</font>&nbsp; </td>
        <td>&nbsp; </td>
        <td align=left> <font size=2 face="serif">GO</font>&nbsp; </td>
        <td>&nbsp; </td>
        <td align=left> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
      </tr>
      <tr valign="bottom">
        <td align=left> <font size=2 face="serif">COP</font>&nbsp; </td>
        <td>&nbsp; </td>
        <td align=left> <font size=2 face="serif">&#151; Certificate
            of Participation</font>&nbsp; </td>
        <td>&nbsp; </td>
        <td align=left> <font size=2 face="serif">MBIA</font>&nbsp; </td>
        <td>&nbsp; </td>
        <td align=left> <font size=2 face="serif">&#151; Municipal
            Bond Insurance Assoc.</font>&nbsp; </td>
      </tr>
      <tr valign="bottom">
        <td align=left> <font size=2 face="serif">FGIC</font>&nbsp; </td>
        <td>&nbsp; </td>
        <td align=left> <font size=2 face="serif">&#151; Financial
            Guaranty Insurance Co.</font>&nbsp; </td>
        <td>&nbsp; </td>
        <td align=left> <font size=2 face="serif">RB</font>&nbsp; </td>
        <td>&nbsp; </td>
        <td align=left> <font size=2 face="serif">&#151; Revenue Bond</font>&nbsp; </td>
      </tr>
      <tr valign="bottom">
        <td align=left> <font size=2 face="serif">FSA</font>&nbsp; </td>
        <td>&nbsp; </td>
        <td align=left> <font size=2 face="serif">&#151; Financial
            Security Assurance</font>&nbsp; </td>
        <td>&nbsp; </td>
        <td align=left> <font size=2 face="serif">SA</font>&nbsp; </td>
        <td>&nbsp; </td>
        <td align=left> <font size=2 face="serif">&#151; Special Assessment</font>&nbsp; </td>
      </tr>
      <tr valign="bottom">
        <td align=left>&nbsp;</td>
        <td>&nbsp;</td>
        <td align=left>&nbsp;</td>
        <td>&nbsp;</td>
        <td align=left>&nbsp;</td>
        <td>&nbsp;</td>
        <td align=left>&nbsp;</td>
      </tr>
    </table>
    </div>
<p><BR>
</p>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">33</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">PORTFOLIO OF INVESTMENTS (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock Florida Municipal Bond Trust (BIE)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD align=left>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
            </center></TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=56% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=13% align=left>&nbsp;

        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=1% align=left>

          <div align="left"></div></TD>
        <TD width=6% align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=6% align=right>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR>
        <TD colspan=10>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;153.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Florida&#151;140.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Bay Cnty. RB, 5.125%, 9/01/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">09/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,319,488</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Boynton Beach Multi-Fam. RB, Clipper Cove Apts. Proj., 5.30%, 1/01/23, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,031,680</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Capital Trust Agcy. Multi-Fam. RB, American Oppty. Proj., Ser. A, 5.875%, 6/01/38</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">975,470</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,650</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Colonial Cntry. Club Cmnty. Dev. Dist. RB, 6.40%, 5/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,763,866</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">865</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Gateway Svcs. Cmnty. Dev. Dist. SA, Stoneybrook Proj., 5.50%, 7/01/08</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">870,233</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Greater Orlando Aviation Auth. RB, Orlando Arpt. Facs. Proj., Ser. A, 5.125%, 10/01/32, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,197,041</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,900</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Highlands Cnty. Hlth. Facs. Auth. RB, Hosp. Adventist/Sunbelt Proj., Ser. A, 6.00%, 11/15/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,324,144</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,810</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hillsborough Cnty. Ind. Dev. Auth. PCR RB, Tampa Elec. Co. Proj., 5.50%, 10/01/23</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,900,446</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Jacksonville Econ. Dev. Comm. Hlth. Facs. RB, Mayo Clinic Proj., Ser. B, 5.50%, 11/15/36</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,781,785</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">JEA RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Aa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Elec. Sys., Ser. A, 5.50%, 10/01/07</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,162,150</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,425</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Wtr. &amp; Swr. Sys., Ser. A, 5.375%, 10/01/30, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/07 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,529,757</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Lakeland Hosp. Sys. RB, Lakeland Regl. Hlth. Sys. Proj., 5.50%, 11/15/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,193,200</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">920</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Madison Cnty. RB First Mtg., Twin Oaks Proj., Ser. A, 6.00%, 7/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">950,562</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Miami Beach Hlth. Facs. Auth. RB, Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,683,975</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Miami Dade Cnty. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,410</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 10/01/32, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/08 @ 26.494</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,304,297</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, Zero Coupon, 10/01/26, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/08 @ 37.301</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,866,590</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, Zero Coupon, 10/01/30, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/08 @ 29.688</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,707,400</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,150</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Mun. Loan Council RB, Ser. A, 5.125%, 5/01/32, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,330,400</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Orange Cnty. Hlth. Facs. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">340</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Hlth. Care Orlando Lutheran Proj., 5.375%, 7/01/20</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">337,311</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">305</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Hlth. Care Orlando Lutheran Proj., 5.70%, 7/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">306,867</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Orlando Regl. Hlth. Care Proj., 5.75%, 12/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,603,350</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,350</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Orange Cnty. Tourist Dev. RB, 5.125%, 10/01/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,544,032</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,105</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Osceola Cnty. Tourist Dev. RB, Ser. A, 5.00%, 10/01/32, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,239,105</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,630</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Palm Bay Util. RB, Zero Coupon, 10/01/28, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,254,964</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Palm Beach Cnty. Sch. Brd., COP, Ser. C, 5.00%, 8/01/27, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,131,850</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Port St. Lucie Util. RB, 5.125%, 9/01/11, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,610,790</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">So. Broward Hosp. Dist. RB, 5.60%, 5/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,137,880</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,765</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Stevens Plantation Impvt. Proj. RB, 6.375%, 5/01/13</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,816,591</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,780</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Sumter Cnty. Indl. Dev. Auth. RB, No. Sumter Util. Co. LLC Proj., 6.80%, 10/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/09 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,907,963</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,575</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Vlg. Cmnty. Dev. Dist. Assmt. RB, No. 5, Spl. Assmt., Ser. A, 6.50%, 5/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,691,896</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Volusia Cnty. Edl. Fac. Auth. RB, Embry Riddle Aeronautical Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.20%, 10/15/26, RAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,324,013</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,610</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.20%, 10/15/33, RAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,702,124</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">75,501,220</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Multi-State&#151;6.3%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,402,660</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Puerto Rico&#151;7.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">920</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hwy. &amp; Trans. Auth. RB, 5.00%, 7/01/45</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">944,784</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,565</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Pub. Bldgs. Auth. Gov&#146;t. Facs. RB, Ser. D, 5.25%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,785,821</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,730,605</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;153.6% (cost &#36;76,584,294</FONT></B><B><SUP><FONT size=1 face="serif">7</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">82,634,485</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.8%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">976,487</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(55.4)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">(29,790,711)</FONT></div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">53,820,261</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>       </TD>
        <TD>
      <hr noshade size=3>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">34</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Florida Municipal Bond Trust (BIE) (continued)</FONT></B></P>
<P>&nbsp;</P>
<hr size="1" noshade>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<P>
<SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Security, or a portion thereof, pledged as collateral with the value of &#36;312,512 on 47 short U.S. Treasury Note futures contracts expiring June 2006 and 64 short U.S.
Treasury Bond futures contracts expiring June 2006. The notional value of such contracts on February 28, 2006 was &#36;12,309,594, with an unrealized loss of &#36;42,444.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">Security is deemed to be investment grade quality by the investment advisor.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6 </FONT></SUP><FONT size=1 face="serif">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 28, 2006, the Trust held 6.3% of its net assets, with a current market value of &#36;3,402,660, in securities restricted as to resale.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">7 </FONT></SUP><FONT size=1 face="serif">Cost for Federal tax purposes is &#36;76,539,795. The net unrealized appreciation on a tax basis is &#36;6,094,690, consisting of &#36;6,102,490 gross unrealized appreciation
and &#36;7,800 unrealized depreciation.</FONT></P>
<div style="border:1px solid #000000; padding:5px">
  <p></p>
  <p align="center"><b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b></p>
  <table width="90%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">ACA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; American Capital
          Access</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">PCR</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Pollution Control
          Revenue</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">COP</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Certificate
          of Participation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">RAA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Radian Asset
          Assurance</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">SA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Special Assessment</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
    </tr>
  </table>
  </div>
<P align="center"><BR>
</P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">35</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">PORTFOLIO OF INVESTMENTS (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock Maryland Municipal Bond Trust (BZM)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=8% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
    </center></TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=51% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=14% align=left>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=1% align=left>

          <div align="left"></div></TD>
        <TD width=5% align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;152.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Maryland&#151;120.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">&#36; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Annapolis RB, Park Place Proj., Ser. A, 5.35%, 7/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/15 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">505,080</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,870</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Anne Arundel Cnty. Econ. Dev. RB, Cmnty. Coll. Proj., 5.25%, 9/01/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">09/12 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,079,194</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Baltimore Cnty., GO,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Met. 67th Dist., 5.00%, 6/01/22</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,127,480</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Met. 68th Dist., 5.00%, 8/01/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,107,420</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Baltimore ST, Harborview Lot No. 2 Proj., 6.50%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/13 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,071,270</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Baltimore Wstwtr. Proj. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.125%, 7/01/42, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,091,560</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.20%, 7/01/32, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,732,540</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Frederick Cnty. ST, Urbana Cmnty. Dev. Auth. Proj., 6.625%, 7/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/07 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,036,380</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hlth. &amp; Higher Edl. Facs. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Brd. of Child Care Proj., 5.375%, 7/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,133,860</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,990</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Carroll Cnty. Gen. Hosp. Proj., 6.00%, 7/01/37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,126,673</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Johns Hopkins Univ. Proj., Ser. B, 5.00%, 7/01/41</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,066,880</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Loyola Coll. Issue Proj., 5.00%, 10/01/39</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/09 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,052,540</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Union Hosp. of Cecil Cnty. Proj., 5.625%, 7/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,111,300</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Univ. of Maryland Med. Sys. Proj., 5.25%, 7/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,069,280</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Indl. Dev. Fin. Auth., Econ. Dev. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Our Lady of Lord Counsel High School Proj., 6.00%, 5/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,040,330</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,905</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Nat. Aquarium Baltimore Fac. Proj., Ser. B, 5.20%, 11/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,011,185</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Montgomery Cnty. Lease RB, Metrorail Garage Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 6/01/23</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">529,055</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,435</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 6/01/24</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,515,145</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Prince Georges Cnty. SO, 5.20%, 7/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,511,595</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">St. Mary&#146;s Coll. RB, Academic &amp; Auxil. Fees,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 9/01/27, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">09/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,057,570</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 9/01/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">09/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,051,640</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Transp. Auth., Arpt. Pkg. RB, Baltimore/Wash. Intl. Arpt. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 5.125%, 3/01/24, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">03/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,088,920</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">39,116,897</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Multi-State&#151;7.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,268,440</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Puerto Rico&#151;24.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Children&#146;s Trust Fund Tobacco Settlement RB, 5.50%, 5/15/39</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,063,000</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,060</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Elec. Pwr. Auth. RB, Ser. HH, 5.25%, 7/01/29, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/10 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,212,646</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hwy. &amp; Transp. Auth. RB, Ser. D, 5.25%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,178,060</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Pub. Bldgs. Auth., Gov&#146;t. Facs. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,100</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. D, 5.375%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,202,388</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">350</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. D, 5.375%, 7/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">370,828</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,026,922</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;46,061,725)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">49,412,259</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR>
        <TD>&nbsp;

        </TD>
    <TD>&nbsp;</TD>
    <TD><hr align="right" 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>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="left"></div></TD>
        <TD>
          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;0.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">150</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">AIM Tax Free Investment Co. Cash Reserve Portfolio (cost &#36;150,000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">150,000</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;152.8% (cost &#36;46,211,725</FONT></B><B><SUP><FONT size=1 face="serif">6</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">49,562,259</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;2.7%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">876,010</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(55.5)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">(18,007,792)</FONT>
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">32,430,477</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>       </TD>
        <TD>
      <hr noshade size=3>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">36</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock Maryland Municipal Bond Trust (BZM) (continued)</FONT></B></P>
<P>&nbsp;</P>
<hr size="1" noshade>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<P>
<SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">Security, or a portion thereof, pledged as collateral with a value of &#36;215,248 on 29 short U.S. Treasury Note futures contracts expiring June 2006 and 40 short U.S. Treasury
Bond futures contracts expiring June 2006. The value of such contracts on February 28, 2006 was &#36;7,653,031, with an unrealized loss of &#36;26,531.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">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 28, 2006, the Trust held 7.0% of its net assets, with a current market value of &#36;2,268,440, in securities restricted as to resale.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6 </FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;46,206,337. The net unrealized appreciation on a tax basis is &#36;3,355,922, consisting of &#36;3,355,922 gross unrealized
appreciation and &#36;0 gross unrealized depreciation.</FONT></P>
<div style="border:1px solid #000000; padding:5px">
  <p></p>
  <p align="center"><b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b></p>
  <table width="90%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=right> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Revenue Bond</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=right> <font size=2 face="serif">SO</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Special Obligations</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=right> <font size=2 face="serif">ST</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Special Tax</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
    </tr>
  </table>
  </div>
<P align="center"><BR>
</P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">37</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">PORTFOLIO OF INVESTMENTS (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD align=left>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
            </center></TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=58% align=left>&nbsp;

        </TD>
        <TD width=11% align=left>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=1% align=left>

          <div align="left"></div></TD>
        <TD width=5% align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=6% align=right>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;151.2%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Multi-State&#151;6.1%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,000 </FONT><SUP><FONT size=1 face="serif">3</FONT></SUP></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,268,440</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">New Jersey&#151;125.8%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Econ. Dev. Auth.,</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Cigarette Tax RB, 5.75%, 6/15/34</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,134,400</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,335</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Continental Airlines, Inc. Proj. RB, 7.00%, 11/15/30</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/10 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,339,670</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Fellowship Vlg. Proj. RB, Ser. A, 5.50%, 1/01/25</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/08 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,015,600</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">150</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">First Mtg. Lions Gate Proj. RB, Ser. A, 5.75%, 1/01/25</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">153,473</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">265</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">First Mtg. Lions Gate Proj. RB, Ser. A, 5.875%, 1/01/37</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">270,019</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kapkowski Rd. Landfill Proj. SA, 6.50%, 4/01/28</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,704,702</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sld. Wst. Rev., Disp. Wst. Mgmt. Proj. RB, Ser. A, 5.30%, 6/01/15</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,059,470</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,730</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Victoria Hlth. Proj. RB, Ser. A, 5.20%, 12/20/36</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/11 @ 103</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,857,345</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Winchester Proj. RB, Ser. A, 5.80%, 11/01/31</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,605,950</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Edl. Facs. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Fairleigh Dickinson Univ. Proj., Ser. C, 5.50%, 7/01/23</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">525,160</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Fairleigh Dickinson Univ. Proj., Ser. C, 6.00%, 7/01/20</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,084,360</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Fairleigh Dickinson Univ. Proj., Ser. D, 6.00%, 7/01/25</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,071,410</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">630</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Georgian Court Coll. Proj., Ser. C, 6.50%, 7/01/33</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">706,192</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Montclair St. Univ. Proj., Ser. F, 5.00%, 7/01/32, FGIC</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">794,085</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=1 face="serif">Garden St. Pres. Trust, Open
          Space &amp; Farmland Pres. RB, Ser. B, Zero Coupon, 11/01/27, FSA</FONT>&nbsp;
            </div></TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,496,720</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hlth. Care Fac. Fin. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Atlantic City Med. Ctr. Proj., 5.75%, 7/01/25</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,124,880</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Catholic Hlth. East. Proj., Ser. A, 5.375%, 11/15/33</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,103,660</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kennedy Hlth. Sys. Proj., 5.625%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,119,980</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">So. Jersey Hosp. Proj., 6.00%, 7/01/32</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,656,250</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hsg. &amp; Mtg. Fin. Agcy., Multi-Fam. Hsg. RB, Ser. A, 5.65%, 5/01/40, AMBAC</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/07 @ 101.5</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,313,045</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Middlesex Cnty. Imprt. Auth. RB, Heldrich Ctr. Hotel Proj., Ser. B, 6.25%, 1/01/37</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,493,475</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Port Auth. of NY &amp; NJ RB,</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. 125, 5.00%, 4/15/32, FSA</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,582,350</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. 126, 5.25%, 5/15/37, FGIC</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,392,493</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Caa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">130</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Contl./Eastern LaGuardia Proj., 9.125%, 12/01/15</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">03/06 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">131,022</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tobacco Settlement Fin. Corp. RB, 6.125%, 6/01/42</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,200,640</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Univ. of Med. &amp; Dentistry RB, Ser. A, 5.00%, 12/01/31, AMBAC</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,046,500</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Vineland, GO,</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.30%, 5/15/29, MBIA</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/10 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,055,030</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.375%, 5/15/32, MBIA</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/10 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,577,355</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">46,615,236</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Puerto Rico&#151;19.3%</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Elec. Pwr. Auth. RB, Ser. 2, 5.25%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,371,432</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,100</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hwy. &amp; Transp. Auth. RB, Ser. D, 5.25%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,286,963</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Pub. Bldgs. Auth., Gov&#146;t. Facs. RB,</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,685</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. D, 5.25%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,830,062</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">615</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. D, 5.25%, 7/01/27</FONT>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">649,821</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,138,278</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;52,043,297)</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">56,021,954</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">38</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock New Jersey Municipal Bond Trust (BLJ) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=2% align=right>&nbsp;</TD>
  <TD width=2% align=right>&nbsp;</TD>
  <TD width=2% align=right>&nbsp;</TD>
        <TD width=5% align=right>
      <center>
        <B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
            </center></TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=78% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
            </center></TD>
</TR>
<TR>
  <TD><HR noshade size=1></TD>
  <TD><HR noshade size=1></TD>
  <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;1.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">350</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">AIM Tax Free Investment Co. Cash Reserve Portfolio (cost &#36;350,000)</FONT>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif"> 350,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;152.2% (cost &#36;52,393,297</FONT></B><B><SUP><FONT size=1 face="serif">6</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif"> 56,371,954</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;2.4%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">899,210</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(54.6)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">(20,226,729)</FONT>
        </TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif"> 37,044,435</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD></TD>
  <TD></TD>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<P>
<SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">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 28, 2006, the Trust held 6.1% of its net assets, with a current market value of &#36;2,268,440, in securities restricted as to resale.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Security, or a portion thereof, pledged as collateral with a value of &#36;320,810 on 43 short U.S. Treasury Note futures contracts expiring June 2006 and 57 short U.S. Treasury
Bond futures contracts expiring June 2006. The notional value of such contracts on February 28, 2006 was &#36;11,086,313, with an unrealized loss of &#36;37,878.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6 </FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;52,373,649. The net unrealized appreciation on a tax basis is &#36;3,998,305, consisting of &#36;3,998,305 gross unrealized
appreciation and &#36;0 gross unrealized depreciation.</FONT></P>
<div style="border:1px solid #000000; padding:5px">
  <p></p>
  <p align="center"><b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b></p>
  <table width="90%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Revenue Bonds</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">SA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Special Assessment</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
    </tr>
  </table>
  </div>
<P align="center"><BR>
</P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">39</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">PORTFOLIO OF INVESTMENTS (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD align=left>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
            </center></TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=56% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=12% align=left>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=1% align=left>

          <div align="left"></div></TD>
        <TD width=6% align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=5% align=right>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;146.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">New York&#151;133.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dorm. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Brooklyn Law Sch. Proj., Ser. B, 5.125%, 7/01/30, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,314,750</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Hosp. Lutheran Med. Proj., 5.00%, 8/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">02/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,302,750</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Insured Fit Student Hsg. Corp. Proj., 5.125%, 7/01/34, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,675,450</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,160</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Iona Coll. Proj., 5.00%, 7/01/27, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,320,528</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Aa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Joachim &amp; Ann Residence Proj., 5.25%, 7/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,107,460</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Memorial Sloan Kettering Ctr. Proj., Ser. 1, Zero Coupon, 7/01/30, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,379,000</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">New York &amp; Presbyterian Hosp. Proj., 5.00%, 8/01/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">02/08 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,112,250</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">New York Univ. Proj., Ser. 2, 5.00%, 7/01/41, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,210,560</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sch. Dist. Fin. Proj., Ser. A, 5.00%, 4/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,088,720</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Sch. Dist. Fin. Proj., Ser. D, 5.00%, 10/01/30, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,671,675</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">St. Barnabas Proj., Ser. A, 5.00%, 2/01/31, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,283,710</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Winthrop Univ. Hosp. Assoc. Proj., Ser. A, 5.25%, 7/01/31, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,132,000</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Herkimer Cnty. Indl. Dev. Agcy., Civic Fac. RB, Coll. Fndtn., Inc. Student Hsg. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.25%, 8/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,038,270</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Met. Transp. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,085</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 11/15/25, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,142,288</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8,470</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 11/15/30, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,876,730</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.25%, 11/15/31, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,388,200</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ded. Tax Fund, Ser. A, 5.00%, 11/15/11, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,376,250</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,660</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Refdg. Transp., Ser. E, 5.25%, 11/15/31, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,848,727</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Svc. Contract, Ser. A, 5.00%, 7/01/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,434,300</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Indl. Dev. Agcy. RB, Lycee Francais De Proj., Ser. A, 5.375%, 6/01/23, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,590,525</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Mun. Wtr. Fin. Auth., Wtr. &amp; Swr. Sys. RB, Ser. D, 5.00%, 6/15/39, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,674,755</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Transl. Fin. Auth. RB, Ser. B, 5.00%, 5/01/30, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,279,600</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Trust Cultural Recs. RB, American Museum of Natural History Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 7/01/44, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,221,150</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,320</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York Cntys. Tobacco Trust III RB, 6.00%, 6/01/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,484,373</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Sales Tax Asset Receivable Corp. RB, Ser. A, 5.00%, 10/15/32, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,343,740</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Triborough Brdg. &amp; Tunl. Auth. RB, Ser. E, 5.00%, 11/15/32, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">10,480,200</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">6,000</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">TSASC, Inc., Tobacco Settlement RB, Ser. 1, 5.75%, 7/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,706,140</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">132,484,101</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Puerto Rico&#151;13.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">7,600</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Children&#146;s Trust Fund Tobacco Settlement RB, 5.625%, 5/15/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">7,848,596</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Indl. Fin. Auth. RB, Med. &amp; Env. Ctrl. Facs., Polytecnic Univ. Proj., Ser. A, 5.00%, 8/01/32, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,048,900</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">12,897,496</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;138,089,051)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">145,381,597</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR>
        <TD>&nbsp;

        </TD>
    <TD>&nbsp;</TD>
    <TD><hr noshade size=1></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="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="left"></div></TD>
        <TD>
          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">MONEY MARKET FUNDS&#151;8.5%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4,950</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">AIM Tax Free Investment Co. Cash Reserve Portfolio</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,950,000</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,550</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">SSgA Tax Free Money Mkt. Fund</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,550,000</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Short-Term Investments (cost &#36;8,500,000)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">8,500,000</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;154.9% (cost &#36;146,589,051</FONT></B><B><SUP><FONT size=1 face="serif">5</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">153,881,597</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.5%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,459,971</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(56.4)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">(56,021,087)</FONT>
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">99,320,481</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>       </TD>
        <TD>
      <hr noshade size=3>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">40</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock New York Insured Municipal Income Trust (BSE) (continued)</FONT></B></P>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<P>
<SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">Security, or a portion thereof, pledged as collateral with a value of &#36;731,288 on 106 short U.S. Treasury Note futures contracts expiring June 2006 and 142 short U.S.
Treasury bond futures contracts expiring June 2006. The notional value of such contracts on February 28, 2006 was &#36;27,497,375, with an unrealized loss of &#36;94,601.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;146,598,987. The net unrealized appreciation on a tax basis is &#36;7,282,610, consisting of &#36;7,282,610 gross unrealized
appreciation and &#36;0 gross unrealized depreciation.</FONT></P>
<P>
<FONT size=1 face="serif">The value (market value plus accrued interest) of securities that are covered by insurance, which ensures the payment of principal and interest, represent approximately 83.4% of the Trust&#146;s managed assets. The Trust
had the following insurance concentrations:</FONT></P>
<TABLE border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=42% align=left nowrap>
<FONT size=1 face="serif">ACA</FONT>&nbsp;
        </TD>
        <TD width=11% align=right nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=9% nowrap>&nbsp;
        </TD>
        <TD width=30% align=left nowrap>
<FONT size=1 face="serif">5.0%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=42% align=left nowrap>
<FONT size=1 face="serif">AMBAC</FONT>&nbsp;
        </TD>
        <TD width=11% align=right nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=9% nowrap>&nbsp;
        </TD>
        <TD width=30% align=left nowrap>
<FONT size=1 face="serif">31.5%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=42% align=left nowrap>
<FONT size=1 face="serif">FGIC</FONT>&nbsp;
        </TD>
        <TD width=11% align=right nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=9% nowrap>&nbsp;
        </TD>
        <TD width=30% align=left nowrap>
<FONT size=1 face="serif">11.4%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=42% align=left nowrap>
<FONT size=1 face="serif">FSA</FONT>&nbsp;
        </TD>
        <TD width=11% align=right nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=9% nowrap>&nbsp;
        </TD>
        <TD width=30% align=left nowrap>
<FONT size=1 face="serif">5.8%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=42% align=left nowrap>
<FONT size=1 face="serif">MBIA</FONT>&nbsp;
        </TD>
        <TD width=11% align=right nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=9% nowrap>&nbsp;
        </TD>
        <TD width=30% align=left nowrap>
<FONT size=1 face="serif">20.9%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=42% align=left nowrap>
<FONT size=1 face="serif">XCLA</FONT>&nbsp;
        </TD>
        <TD width=11% align=right nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=9% nowrap>&nbsp;
        </TD>
        <TD width=30% align=left nowrap>
<FONT size=1 face="serif">5.8%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=42% align=left nowrap>
<FONT size=1 face="serif">Other</FONT>&nbsp;
        </TD>
        <TD width=11% align=right nowrap>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=9% nowrap>&nbsp;
        </TD>
        <TD width=30% align=left nowrap>
<FONT size=1 face="serif">3.0%</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<p>&nbsp;</p>
<div style="border:1px solid #000000; padding:5px">
  <p></p>
  <p align="center"> <b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b></p>
  <table width="90%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">ACA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; American Capital
          Access</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Revenue Bonds</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">XLCA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; XL Capital Assurance</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
    </tr>
  </table>
  </div>
<p><BR>
</p>

<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">41</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">PORTFOLIO OF INVESTMENTS (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock New York Municipal Bond Trust (BQH)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=8% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD align=left>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
            </center></TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=53% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=12% align=left>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=1% align=left>

          <div align="left"></div></TD>
        <TD width=5% align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=7% align=right>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;152.7%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Multi-State&#151;6.5%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/14@100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,835,550</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">New York&#151;114.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Albany Indl. Dev. Agcy. RB, New Covenant Charter Sch. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 7.00%, 5/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/15 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">193,734</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">130</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 7.00%, 5/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/15 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">123,772</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dorm. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,750</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">City Univ. Proj., Ser. A, 5.25%, 7/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,977,755</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Iona Coll. Proj., 5.125%, 7/01/32, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,641,400</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Mt. Sinai NYU Hlth. Proj., 5.50%, 7/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/08 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">507,475</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Willow Towers, Inc. Proj., 5.40%, 2/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,671,600</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dutchess Cnty. Ind. Dev. Agcy., Civic Facs. RB, Vassar Coll. Proj., 5.35%, 9/01/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,145,260</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,750</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Env. Facs. Corp. RB, Mun. Wtr. Proj., Ser. D, 5.125%, 6/15/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,915,522</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Liberty Dev. Corp. Proj. RB, 5.25%, 10/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,701,630</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Met. Transp. Auth. Ded. Tax Fund RB, Ser. A, 5.125%, 11/15/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,151,470</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Aa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,980</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Mtg. Agcy. RB, Ser. 101, 5.40%, 4/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,066,480</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Hlth. &amp; Hosp. Corp. RB, Hlth. Sys., Ser. A, 5.375%, 2/15/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">02/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,145,067</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Hsg. Dev. Corp., Multi-Fam. Hsg. RB, Ser. A, 5.50%, 11/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,576,075</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Indl. Dev. Agcy. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">600</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">American Airlines, JFK Intl. Arpt. Proj., 7.625%, 8/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">643,062</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">American Airlines, JFK Intl. Arpt. Proj., 7.75%, 8/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/16 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,077,280</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Mun. Wtr. Fin. Auth. RB, Ser. A, 5.25%, 6/15/33, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,640,025</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City, GO, Ser. D, 5.375%, 6/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,208,650</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,445</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York Cntys. Tobacco Trust III RB, 6.00%, 6/01/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,516,542</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Port. Auth. of NY &amp; NJ RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. 126, 5.25%, 5/15/37, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,924,157</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Caa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,600</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Contl./Eastn. LaGuardia Proj., 9.125%, 12/01/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">03/06 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,620,436</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Suffolk Cnty. Indl. Dev. Agcy. RB, Keyspan Port Jefferson Proj., 5.25%, 6/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">519,795</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">TSASC, Inc., Tobacco Settlement RB., Ser. 1, 5.75%, 7/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,353,070</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Urban Dev. Corp. RB, Ser. A, 5.25%, 3/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,452,250</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">49,772,507</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Puerto Rico&#151;31.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,650</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Children&#146;s Trust Fund Tobacco Settlement RB., 5.625%, 5/15/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,769,392</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Elec. Pwr. Auth. RB, Ser. 2, 5.25%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,107,940</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,000</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hwy. &amp; Transp. Auth. RB, Ser. D, 5.25%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,178,060</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Pub. Bldgs. Auth. RB, Gov&#146;t. Facs.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,980</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. D, 5.25%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,150,458</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">720</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. D, 5.25%, 7/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">760,766</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Pub. Impvt. GO,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">925</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.125%, 7/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">996,040</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,825</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.125%, 7/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,883,619</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">13,846,275</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;61,640,347)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">66,454,332</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">42</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">PORTFOLIO OF INVESTMENTS (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock New York Municipal Bond Trust (BQH) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=8% align=right>&nbsp;</TD>
        <TD width=8% align=right>
      <center>
        <B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
            </center></TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=59% align=left>&nbsp;

        </TD>
        <TD width=15%>&nbsp;
        </TD>
        <TD width=1%>&nbsp;</TD>
        <TD width=5% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
            </center></TD>
</TR>
<TR>
  <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;0.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">200</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">AIM Tax Free Investment Co. Cash Reserve Portfolio (cost &#36;200,000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif"> 200,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;153.1% (cost &#36;61,840,347</FONT></B><B><SUP><FONT size=1 face="serif">6</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif"> 66,654,332</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;2.5%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">1,069,344</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(55.6)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif">(24,212,071)</FONT></TD>
</TR>
<TR>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><HR noshade size=1></TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD><FONT size=1 face="serif">&#36;</FONT>&nbsp;</TD>
        <TD align=right>
<FONT size=1 face="serif"> 43,511,605</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD><hr noshade size=3>    </TD>
        <TD>
      <hr noshade size=3>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<P>
<SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">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 28, 2006, the Trust held 6.5% of its net assets, with a current market value of &#36;2,835,550, in securities restricted as to resale.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">Security, or a portion thereof, pledged as collateral with a value of &#36;321,303 on 39 short U.S. Treasury Note futures contracts expiring June 2006 and 54 short U.S. Treasury
Bond futures contracts expiring June 2006. The notional value of such contracts on February 28, 2006 was &#36;10,315,406, with an unrealized loss of &#36;35,601.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6 </FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;61,833,035. The net unrealized appreciation on a tax basis is &#36;4,821,297, consisting of &#36;4,822,839 gross unrealized
appreciation and &#36;1,542 gross unrealized depreciation.</FONT></P>
<div style="border:1px solid #000000; padding:5px">
  <p></p>
  <p align="center"> <b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b></p>
  <table width="90%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">XLCA</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; XL Capital Assurance</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Revenue Bonds</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td align=left>&nbsp;</td>
    </tr>
  </table>
  </div>
<P><BR>
</P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">43</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">PORTFOLIO OF INVESTMENTS (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2006</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock New York Municipal Income Trust II (BFY)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=center>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
    </center></TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=57% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=11% align=left>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=1% align=left>

          <div align="left"></div></TD>
        <TD width=5% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
            </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;154.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Multi-State&#151;5.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">&#36; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.75%, 4/30/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=right>
<FONT size=1 face="serif">530,305</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 6.00%, 4/30/19</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,068,570</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.00%, 4/30/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,571,955</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,000</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. B, 6.30%, 4/30/19</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,069,290</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">4,240,120</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">New York&#151;140.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Albany Indl. Dev. Agcy., New Covenant Charter Sch. Proj. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">345</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 7.00%, 5/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/15 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">334,191</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">220</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 7.00%, 5/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/15 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">209,460</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,725</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Clarence Indl. Dev. Agcy., Civic Fac. RB, Bristol Vlg. Proj., 6.00%, 1/20/44</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/13 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,909,109</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dorm. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Brooklyn Law Sch. Proj., Ser. B, 5.125%, 7/01/30, XLCA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,657,375</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Aa3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Kateri Residence Proj., 5.00%, 7/01/22</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,073,080</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Memorial Sloan Kettering Ctr. Proj., Ser. 1, 5.00%, 7/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,166,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Mount St. Mary Coll. Proj., 5.00%, 7/01/32, RAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,078,160</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">750</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Mt. Sinai NYU Hlth. Proj., 5.50%, 7/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/08 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">761,213</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,425</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">New York Univ. Proj., 5.00%, 7/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,520,133</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,500</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">St. Barnabas Proj., Ser. A, 5.00%, 2/01/31, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,601,325</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">4,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dutchess Cnty. Ind. Dev. Agcy., Civic Facs. RB, Vassar Coll. Proj., 5.35%, 9/01/40</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">4,290,520</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Energy Res. &amp; Dev. Auth., Facs. RB, 4.70%, 6/01/36</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">03/06 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,506,545</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">625</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Essex Cnty. Indl. Dev. Agcy., Sld. Wst. Disp. RB, Intl. Paper Co. Proj., Ser. A, 5.50%, 10/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">641,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,250</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Geneva Indl. Dev. Agcy., Civic Fac. RB, Hobart &amp; Williams Smith Proj., Ser. A, 5.375%, 2/01/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">02/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">3,466,840</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">385</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Herkimer Cnty. Indl. Dev. Agcy. RB, Civic Fac. Coll. Fndtn., Inc. Student Hsg. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">6.25%, 8/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">399,734</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Liberty Dev. Corp. Proj. RB, 5.25%, 10/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,672,100</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,515</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Long Island Pwr. Auth., Elec. Sys. RB, Ser. A, Zero Coupon, 6/01/28, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,303,362</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Met. Transp. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.25%, 11/15/31, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,155,280</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ded. Tax Fund, Ser. A, 5.00%, 11/15/30</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,192,700</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Svc. Contract, Ser. A, 5.125%, 1/01/29</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,262,900</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Indl. Dev. Agcy. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,600</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">American Airlines, JFK Intl. Arpt. Proj., 7.625%, 8/01/25</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/16 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,714,832</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">B-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">American Airlines, JFK Intl. Arpt. Proj., 7.75%, 8/01/31</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/16 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,615,920</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Eger Harbor Proj., Ser. A, 4.95%, 11/20/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,020,510</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Eger Harbor Proj., Ser. A, 5.875%, 5/20/44</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 105</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,126,610</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Liberty Interactive Corp. Proj., 5.00%, 9/01/35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">09/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,000,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Lycee Francais de Proj., Ser. A, 5.375%, 6/01/23, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">12/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">1,554,315</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Mun. Wtr. Fin. Auth. RB, Ser. A, 5.125%, 6/15/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,249,950</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Trans. Auth., Met. Transp. Auth., Triborough Brdg. &amp; Tunl. Auth., COP,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.25%, 1/01/10, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,367,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City Trans. Fin. Auth. RB, Ser. B, 5.00%, 11/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,250,800</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">5,000</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York City, GO, Ser. B, 5.75%, 12/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">5,558,550</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,535</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York Cntys. Tobacco Trust III RB, 6.00%, 6/01/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,660,508</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">New York Convention Ctr. Dev. RB, 5.00%, 11/15/35, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">3,172,260</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Caa2</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,675</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Port Auth. of NY &amp; NJ RB, Contl./Eastn. LaGuardia Proj., 9.125%, 12/01/15</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">03/06 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">3,703,885</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,500</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Suffolk Cnty. Indl. Dev. Agcy. RB, Keyspan Port Jefferson Proj., 5.25%, 6/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">2,598,975</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Triborough Brdg. &amp; Tunl. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">850</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 1/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">913,401</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">150</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. A, 5.00%, 1/01/32</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">156,296</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">9,000</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">TSASC, Inc., Tobacco Settlement RB, Ser. 1, 5.75%, 7/15/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">10,059,210</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=1 face="serif">106,926,199</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">44</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">BlackRock New York Municipal Income Trust II (BFY) (continued)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=8% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=5% align=center>
      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
    </center></TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=53% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=12% align=left>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=1% align=left>

          <div align="left"></div></TD>
        <TD width=6% align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Puerto Rico&#151;8.6%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">&#36; 1,400</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Children&#146;s Trust Fund Tobacco Settlement RB, 5.625%, 5/15/43</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,445,794</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hwy. &amp; Transp. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,850</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.00%, 7/01/28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,909,422</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,000</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. D, 5.375%, 7/01/12</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,192,080</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,000</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Ser. G, 5.00%, 7/01/42</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,023,330</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">6,570,626</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Long-Term Investments (cost &#36;111,498,262)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">117,736,945</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR>
        <TD>&nbsp;

        </TD>
    <TD>&nbsp;</TD>
    <TD><HR align="right" 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>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="left"></div></TD>
        <TD>
          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">MONEY MARKET FUND&#151;2.1%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,600</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">AIM Tax Free Investment Co. Cash Reserve Portfolio (cost &#36;1,600,000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,600,000</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;156.9% (cost &#36;113,098,262</FONT></B><B><SUP><FONT size=1 face="serif">6</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">119,336,945</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;1.8%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,401,082</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(58.7)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">(44,668,722)</FONT>
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">76,069,305</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
          <div align="right"></div></TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>       </TD>
        <TD>
      <hr noshade size=3>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<P>
<SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">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 28, 2006, the Trust held 5.6% of its net assets, with a current market value of &#36;4,240,120, in securities restricted as to resale.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Security, or a portion thereof, pledged as collateral with a value of &#36;626,818 on 70 short U.S. Treasury Note futures contracts expiring June 2006 and 94 short U.S. Treasury
Bond futures contracts expiring June 2006. The notional value of such contracts on February 28, 2006 was &#36;18,184,250, with an unrealized loss of &#36;62,365.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6 </FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;113,094,344. The net unrealized appreciation on a tax basis is &#36;6,242,601, consisting of &#36;6,245,243 gross unrealized
appreciation and &#36;2,642 gross unrealized depreciation.</FONT></P>
<div style="border:1px solid #000000; padding:5px">
  <p></p>
  <p align="center"><b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b></p>
  <table width="90%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">ACA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; American Capital
          Access</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">COP</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Certificate
          of Participation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">RAA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Radian Asset
          Assurance</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Revenue Bonds</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">XLCA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; XL Capital Assurance</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
    </tr>
  </table>
  </div>
<P><BR>
</P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">45</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">PORTFOLIO OF INVESTMENTS (unaudited) FEBRUARY 28, 2006</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock Virginia Municipal Bond Trust (BHV)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD align=left>      <center>
        <B><FONT size=2 face="serif">Principal</FONT></B>&nbsp;
    </center></TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=55% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>&nbsp;

        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=1% align=left>

          <div align="left"></div></TD>
        <TD width=6% align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Option Call</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">Rating</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=6% align=right>
      <center>
        <B><FONT size=2 face="serif">(000)</FONT></B>&nbsp;
            </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2
face="serif">Description</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Provisions</FONT></B><B><SUP><FONT size=2 face="serif">2</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Value</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">LONG-TERM INVESTMENTS&#151;151.0%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Multi-State&#151;6.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,500</FONT><SUP><FONT size=1 face="serif">3</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/14 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,701,330</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Puerto Rico&#151;5.8%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,410</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Children&#146;s Trust Fund, Tobacco Settlement RB, 5.375%, 5/15/33</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,450,397</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Virginia&#151;138.4%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT><SUP><FONT size=1 face="serif">4</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,480</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Alexandria Redev. &amp; Hsg. Auth. RB, 3001 Park Ctr. Apts. Proj., Ser. A, 6.375%, 4/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/08 @ 103</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,432,063</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">2,150</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Arlington Cnty. Ind. Dev. Auth., Hosp. Fac. RB, Virginia Hosp. Ctr., Arlington Hlth. Sys. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 7/01/11</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,334,986</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Arlington Cnty., Pub. Impvt., GO, 5.00%, 2/01/21</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">02/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,571,685</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT><SUP><FONT size=1 face="serif">6</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Celebrate North Cmnty. Dev. Auth., SA, Ser. B, 6.75%, 3/01/34</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">03/14 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,593,825</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT><SUP><FONT size=1 face="serif">7</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Danville Ind. Dev. Auth., Hosp. RB, Danville Regl. Med. Ctr. Proj., 5.25%, 10/01/28, AMBAC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">ETM</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,697,175</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">NR</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">990</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Dulles Town Ctr. Cmnty. Dev. Auth., SA, Dulles Town Ctr. Proj., 6.25%, 3/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">03/08 @ 102</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,022,017</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,205</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Fairfax Cnty. Wtr. Auth. RB, 5.00%, 4/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,270,070</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hampton, GO, 5.00%, 4/01/20</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">04/12 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,069,690</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A-</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Henrico Cnty. Econ. Dev. Auth. RB, Bon Secours Hlth. Sys., Inc. Proj., Ser. A, 5.60%, 11/15/30 .</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,579,350</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Hsg. Dev. Auth., Comnwlth. Mtg. RB, Ser. H, 5.375%, 7/01/36, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,109,980</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,300</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Isle Wight Cnty. Indl. Dev. Auth., Env. Impvt. RB, Ser. A, 5.70%, 11/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">11/13 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,349,686</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Met. Arpts. Auth., Arpt. Sys. RB, Ser. A, 5.25%, 10/01/32, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,572,090</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Norfolk Arpt. Auth. RB., Ser. A, 5.125%, 7/01/31, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">07/11 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,558,995</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">5,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Pocahontas Pkwy. Assoc., Toll Rd. RB, Ser. B, Zero Coupon, 8/15/22, ACA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">08/08 @ 45.5</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">2,016,200</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,275</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Prince William Cnty. RB, 5.00%, 12/01/21</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,347,649</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Res. Auth. RB,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Infrastructure, Ser. A, 5.00%, 5/01/22</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,054,640</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">635</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Infrastructure, Ser. A, 5.125%, 5/01/27</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">05/11 @ 101</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">673,462</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,500</FONT><SUP><FONT size=1 face="serif">5</FONT></SUP>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Wtr. &amp; Swr. Sys., Frederick Cnty. San. Auth. Proj., 5.20%, 10/01/10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">N/A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,605,645</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Richmond Met. Auth., Expwy. RB, 5.25%, 7/15/22, FGIC</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,415,837</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">3,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Richmond Pub. Util. RB, 5.00%, 1/15/33, FSA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">01/12 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">3,117,180</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Tobacco Settlement Fin. Corp. RB, 5.50%, 6/01/26</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">06/15 @ 100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">513,185</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Virginia Coll. Bldg. Auth., Edl. Facs. RB, Washington &amp; Lee Univ. Proj.,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <div align="right"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 1/01/26, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">574,550</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=1 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">5.25%, 1/01/31, MBIA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">No Opt. Call</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">1,144,300</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">34,624,260</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Total Investments&#151;151.0% (cost &#36;34,956,332</FONT></B><B><SUP><FONT size=1 face="serif">8</FONT></SUP></B><B><FONT size=1 face="serif">)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">37,775,987</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Other assets in excess of liabilities&#151;3.1%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">784,747</FONT>&nbsp;
            </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">Preferred shares at redemption value, including dividends payable&#151;(54.1)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">(13,530,372)</FONT>
            </div></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="serif">Net Assets Applicable to Common Shareholders&#151;100%</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=1 face="serif">&#36;</FONT>&nbsp;
            </div></TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">25,030,362</FONT>&nbsp;
            </div></TD>
</TR>
<TR>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>       </TD>
        <TD>
      <hr noshade size=3>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<P>
<SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">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 28, 2006, the Trust held 6.8% of its net assets, with a current market value of &#36;1,701,330, in securities restricted as to resale.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Security is deemed to be of investment grade quality by the investment advisor.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated,
typically at a premium to par.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">6 </FONT></SUP><FONT size=1 face="serif">Security, or a portion thereof, pledged as collateral with a value of &#36;315,587 on 26 short U.S. Treasury Note futures contracts expiring June 2006 and 35 short U.S. Treasury
Bond futures contracts expiring June 2006. The notional value of such contracts on February 28, 2006 was &#36;6,763,843, with an unrealized loss of &#36;23,047.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">7 </FONT></SUP><FONT size=1 face="serif">Security is collateralized by U.S. Treasury obligations.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">8 </FONT></SUP><FONT size=1 face="serif">Cost for Federal income tax purposes is &#36;34,895,778. The net unrealized appreciation on a tax basis is &#36;2,880,209, consisting of &#36;2,931,846 gross unrealized
appreciation and &#36;51,637 gross unrealized depreciation.</FONT></P>
<div style="border:1px solid #000000; padding:5px">
  <p></p>
  <p align="center"><b><font size=2 face="serif">KEY TO ABBREVIATIONS</font></b></p>
  <table width="90%" border=0 align="center" cellpadding=0 cellspacing=0>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">ACA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; American Capital
          Access</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">FSA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Security
          Assurance</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">AMBAC</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; American Municipal
          Bond Assurance Corp.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">GO</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; General Obligation</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">COP</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Certificate
          of Participation</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">MBIA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Municipal Bond
          Insurance Assoc.</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">ETM</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Escrowed to
          Maturity</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">RB</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Revenue Bonds</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left> <font size=2 face="serif">FGIC</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Financial Guaranty
          Insurance Co.</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">SA</font>&nbsp; </td>
      <td>&nbsp; </td>
      <td align=left> <font size=2 face="serif">&#151; Special Assessment</font>&nbsp; </td>
    </tr>
    <tr valign="bottom">
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
      <td>&nbsp;</td>
      <td align=left>&nbsp;</td>
    </tr>
  </table>
</div>
<P align="center"><BR>
  <FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">46</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>

<B><FONT face="serif">STATEMENTS OF ASSETS AND LIABILITIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">February 28, 2006</FONT></B>
<hr size="1" noshade>
<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">California</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Insured</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Insured</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>&nbsp;
            </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Income Trust</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>&nbsp;
            </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Income Trust II</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Income Trust</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BYM)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BBK)</FONT></B>&nbsp;
            </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BLE)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BCK)</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Assets</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investments at value</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">631,050,266</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
            </div></TD>
        <TD align=right>
<FONT size=2 face="serif">255,032,481</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">560,100,677</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">125,790,475</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Cash</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">545,315</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">509,160</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">526,755</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">506,443</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investments in affiliates</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">57,303</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">24,761</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">51,648</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,157</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Receivable from investments sold</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">97,850</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Interest receivable</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,378,480</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,724,235</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,684,832</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,339,797</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Receivable from affiliates</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">72,502</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">45,301</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Other assets</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">46,817</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">24,105</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">33,985</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">27,589</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">638,150,683</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">258,360,043</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">567,495,747</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">127,673,461</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=16>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Liabilities</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Variation margin payable</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">538,552</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">192,321</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">448,156</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">115,694</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends payable&#151;common shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,598,438</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">878,190</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,914,235</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">306,018</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment advisory fee payable</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">356,790</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">154,331</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">362,808</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">71,396</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Deferred Trustees&#146;fees</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">57,303</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">24,761</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">51,648</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,157</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Payable to affiliates</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,175</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">11,552</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">20,449</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,372</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Excise tax payable</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">72,502</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">45,301</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Other accrued expenses</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">99,756</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">118,128</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">87,915</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">44,564</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,747,516</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">1,424,584</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,885,211</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">551,201</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=16>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Preferred Shares at Redemption Value</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">&#36;25,000 liquidation value per share, including</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">dividends payable</FONT><SUP><FONT size=2 face="serif">2,3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">229,020,279</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">90,544,746</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">205,632,089</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">46,502,681</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR>
        <TD colspan=16>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Net Assets Applicable to</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">406,382,888</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
            </div></TD>
        <TD align=right>
<FONT size=2 face="serif">166,390,713</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">358,978,447</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">80,619,579</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>       </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=16>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Composition of Net Assets Applicable to</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common Shareholders:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Par value</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">26,204</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
            </div></TD>
        <TD align=right>
<FONT size=2 face="serif">10,167</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">22,857</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,276</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Paid-in capital in excess of par</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">371,940,567</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">144,285,140</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">324,475,039</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">74,807,848</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Undistributed net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,100,293</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,886,522</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,921,666</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">218,883</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=2 face="serif">Accumulated net realized gain (loss) on investments</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">and futures</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,716,381</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">1,112,472</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(7,137,056</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,200,984</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net unrealized appreciation on investments</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">and futures</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">35,032,205</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">18,096,412</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">37,695,941</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,788,556</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets applicable to common shareholders,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">February 28, 2006</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">406,382,888</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
            </div></TD>
        <TD align=right>
<FONT size=2 face="serif">166,390,713</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">358,978,447</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">80,619,579</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <hr noshade size=3>
  </TD>
  <TD>
    <hr noshade size=3>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <hr noshade size=3>
  </TD>
  <TD>
    <hr noshade size=3>
  </TD>
  <TD> </TD>
  <TD>
    <hr noshade size=3>
  </TD>
  <TD>
    <hr noshade size=3>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <hr noshade size=3>
  </TD>
  <TD>
    <hr noshade size=3>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR>
        <TD colspan=16>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value per common share</FONT><SUP><FONT size=2 face="serif">4</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;15.51</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;16.37</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;15.71</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;15.28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr align="right" width="50" size=3 noshade>      </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
      <hr align="right" width="50" size=3 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr align="right" width="50" size=3 noshade>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr align="right" width="50" size=3 noshade>
        </TD>
        <TD>&nbsp;      </TD>
</TR>
<TR>
        <TD colspan=16>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<SUP><FONT size=2 face="serif">1 </FONT></SUP><FONT size=2 face="serif">Investments at cost</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">595,597,890</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
            </div></TD>
        <TD align=right>
<FONT size=2 face="serif">236,785,947</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">522,054,916</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">118,911,620</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<SUP><FONT size=2 face="serif">2 </FONT></SUP><FONT size=2 face="serif">Preferred shares outstanding</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,159</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">3,620</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,222</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,860</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<SUP><FONT size=2 face="serif">3 </FONT></SUP><FONT size=2 face="serif">Par value per share</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">0.001</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<SUP><FONT size=2 face="serif">4 </FONT></SUP><FONT size=2 face="serif">Common shares outstanding</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">26,203,900</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">10,167,170</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">22,856,544</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,276,156</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">47</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


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<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
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</TR>
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          <center>
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          <center>
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        <TD align=left>

          <center>
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        <TD align=left>

          <center>
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        <TD align=left>

          <center>
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        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Florida</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
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          <center>
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        <TD align=left>

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        <TD align=left>

          <center>
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        <TD align=left>

          <center>
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</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">California</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
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        <TD>
          <center>
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        <TD align=left>

          <center>
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        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">California</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
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        <TD align=left>

          <center>
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        <TD align=center>
      <center>
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            </center></TD>
        <TD align=left>

          <center>
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        <TD>
          <center>
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        <TD align=left>

          <center>
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        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Florida</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
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        <TD>
          <center>
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        <TD align=left>

          <center>
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        <TD align=right>
      <center>
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            </center></TD>
        <TD align=left>

          <center>
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        <TD>
          <center>
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        <TD align=left>

          <center>
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      <center>
        <B><FONT size=2 face="serif">New Jersey</FONT></B>&nbsp;
            </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>&nbsp;
            </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Income Trust II</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Income Trust</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>&nbsp;
            </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BZA)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BCL)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BAF)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BIE)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BZM)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BLJ)</FONT></B>&nbsp;
            </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
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<HR noshade size=1>
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        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD colspan=22>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">83,254,615</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">194,517,713</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">206,071,868</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">82,634,485</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">49,562,259</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">56,371,954</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">517,386</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">545,643</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
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<FONT size=2 face="serif">54,275</FONT>
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<FONT size=2 face="serif">33,752</FONT>
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<FONT size=2 face="serif">522,998</FONT>
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<TR>
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<TR>
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        </TD>
</TR>
<TR valign="bottom">
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        </TD>
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<FONT size=2 face="serif">29,979,435</FONT>
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        </TD>
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        </TD>
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<FONT size=2 face="serif">71,982,576</FONT>
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<FONT size=2 face="serif">76,005,624</FONT>
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<FONT size=2 face="serif">29,790,711</FONT>
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        </TD>
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        </TD>
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<FONT size=2 face="serif">18,007,792</FONT>
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<FONT size=2 face="serif">20,226,729</FONT>&nbsp;
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<TR>
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<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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<FONT size=2 face="serif">54,366,779</FONT>
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 &nbsp;<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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<FONT size=2 face="serif">124,763,244</FONT>
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<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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<FONT size=2 face="serif">132,629,440</FONT>
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        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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<FONT size=2 face="serif">53,820,261</FONT>
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<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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<FONT size=2 face="serif">32,430,477</FONT>
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<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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<FONT size=2 face="serif">37,044,435</FONT>&nbsp;
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<TR>
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<FONT size=2 face="serif">3,356</FONT>
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<FONT size=2 face="serif">7,985</FONT>
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<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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<FONT size=2 face="serif">8,734</FONT>
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<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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<FONT size=2 face="serif">3,313</FONT>
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<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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<FONT size=2 face="serif">2,020</FONT>
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<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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<FONT size=2 face="serif">2,275</FONT>&nbsp;
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<FONT size=2 face="serif">47,541,025</FONT>
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        <TD align=right>
<FONT size=2 face="serif">113,257,811</FONT>
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        <TD align=left>&nbsp;

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        <TD align=right>
<FONT size=2 face="serif">123,914,893</FONT>
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        <TD align=left>&nbsp;

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<FONT size=2 face="serif">46,908,773</FONT>
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<FONT size=2 face="serif">28,572,616</FONT>
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        <TD align=left>&nbsp;

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        <TD align=right>
<FONT size=2 face="serif">32,184,170</FONT>&nbsp;
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</TR>
<TR valign="bottom">
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        <TD align=right>
<FONT size=2 face="serif">972,119</FONT>
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        <TD align=left>&nbsp;

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        <TD align=right>
<FONT size=2 face="serif">442,120</FONT>
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        <TD align=right>
<FONT size=2 face="serif">554,292</FONT>
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        <TD align=right>
<FONT size=2 face="serif">1,138,964</FONT>
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        <TD align=right>
<FONT size=2 face="serif">636,619</FONT>
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        <TD align=right>
<FONT size=2 face="serif">754,937</FONT>&nbsp;
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<FONT size=2 face="serif">(876,984</FONT>
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<FONT size=2 face="serif">(907,070</FONT>
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<FONT size=2 face="serif">(104,781</FONT>
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        <TD align=left>&nbsp;

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        <TD align=right>
<FONT size=2 face="serif">162,274</FONT>&nbsp;
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<TR>
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</TR>
<TR valign="bottom">
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        <TD align=right>
<FONT size=2 face="serif">6,727,263</FONT>
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        <TD align=left>&nbsp;

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        <TD align=right>
<FONT size=2 face="serif">16,149,110</FONT>
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        <TD align=right>
<FONT size=2 face="serif">9,058,591</FONT>
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        <TD align=right>
<FONT size=2 face="serif">6,007,747</FONT>
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        <TD align=left>&nbsp;

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<FONT size=2 face="serif">3,324,003</FONT>
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        <TD align=right>
<FONT size=2 face="serif">3,940,779</FONT>&nbsp;
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<TR valign="bottom">
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<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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        <TD align=right>
<FONT size=2 face="serif">54,366,779</FONT>
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        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
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<FONT size=2 face="serif">124,763,244</FONT>
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<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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<FONT size=2 face="serif">132,629,440</FONT>
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<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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<FONT size=2 face="serif">53,820,261</FONT>
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<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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<FONT size=2 face="serif">32,430,477</FONT>
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        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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<FONT size=2 face="serif">37,044,435</FONT>&nbsp;
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<TR>
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        </TD>
</TR>
<TR valign="bottom">
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        </TD>
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<FONT size=2 face="serif">&#36;16.20</FONT>
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        </TD>
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        <TD align=left>&nbsp;

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        <TD align=right>
<FONT size=2 face="serif">&#36;15.63</FONT>
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        <TD align=left>&nbsp;

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        <TD align=left>&nbsp;

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        <TD align=right>
<FONT size=2 face="serif">&#36;15.19</FONT>
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        <TD align=left>&nbsp;

        </TD>
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        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;16.25</FONT>
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        <TD align=left>&nbsp;

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        <TD>&nbsp;
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        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;16.06</FONT>
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        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;16.29</FONT>&nbsp;
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<TR>
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  <TD>
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  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>&nbsp;
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    <hr align="right" width="50" size=3 noshade>
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</TR>
<TR>
        <TD colspan=22>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
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<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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        <TD align=right>
<FONT size=2 face="serif">76,473,471</FONT>
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        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
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        <TD align=right>
<FONT size=2 face="serif">178,221,844</FONT>
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        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">196,887,055</FONT>
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        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">76,584,294</FONT>
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        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">46,211,725</FONT>
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        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">52,393,297</FONT>&nbsp;
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</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,199</FONT>
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        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,878</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,040</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,191</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">720</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">809</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.001</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,356,422</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,984,696</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,734,048</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,312,785</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,019,870</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,274,620</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">48</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">STATEMENTS OF ASSETS AND LIABILITIES (unaudited) (continued)</FONT></B><BR>
<B><FONT face="serif">February 28, 2006</FONT></B>
<hr size="1" noshade>
<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">New York</FONT></B>&nbsp;
            </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Insured</FONT></B>&nbsp;
            </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">New York</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">New York</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Virginia</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>&nbsp;
            </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Income Trust</FONT></B>&nbsp;
            </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Income Trust II</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BSE)</FONT></B>&nbsp;
            </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BQH)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BFY)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BHV)</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=16>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Assets</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investments at value</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">153,881,597</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">66,654,332</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">119,336,945</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">37,775,987</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Cash</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">525,151</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">523,688</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">515,144</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">470,759</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investments in affiliates</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,496</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,749</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11,197</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,888</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Receivable from investments sold</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Interest receivable</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,538,859</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">867,518</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,381,884</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">510,596</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Receivable from affiliates</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,635</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Other assets</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">28,122</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">20,765</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,138</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">660</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">155,992,860</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">68,077,052</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">121,253,308</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">38,772,890</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR>
        <TD colspan=16>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Liabilities</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Variation margin payable</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">121,002</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">45,556</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">80,037</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,760</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends payable &#151; common shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">375,246</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">208,647</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">292,556</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">110,907</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment advisory fee payable</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">87,148</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">38,048</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">77,346</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,735</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Deferred Trustees&#146;fees</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,497</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,749</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11,197</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,888</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Payable to affiliates</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,742</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,957</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,174</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,396</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Excise tax payable</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,635</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Other accrued expenses</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">47,022</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">47,419</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">49,971</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">38,470</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">651,292</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">353,376</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">515,281</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">212,156</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR>
        <TD colspan=16>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Preferred Shares at Redemption Value</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">&#36;25,000 liquidation value per share, including dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">payable</FONT><SUP><FONT size=2 face="serif">2,3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">56,021,087</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,212,071</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">44,668,722</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,530,372</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR>
        <TD colspan=16>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Net Assets Applicable to</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">99,320,481</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">43,511,605</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">&#36;</FONT>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">76,069,305</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">25,030,362</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>       </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=16>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Composition of Net Assets Applicable to</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common Shareholders:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Par value</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,470</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,706</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,938</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,531</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Paid-in capital in excess of par</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">91,773,952</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">38,309,117</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">70,007,203</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,658,481</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Undistributed net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">296,304</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">772,636</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">217,626</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">640,936</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=2 face="serif">Accumulated net realized gain (loss) on investments</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">and futures</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">45,810</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(351,238</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(336,780</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(67,194</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net unrealized appreciation on investments</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">and futures</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,197,945</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,778,384</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,176,318</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,796,608</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets applicable to common shareholders,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">February 28, 2006</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">99,320,481</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">43,511,605</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">76,069,305</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">25,030,362</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>       </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;
</TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=16>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value per common share</FONT><SUP><FONT size=2 face="serif">4</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;15.35</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;16.08</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;15.41</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;16.35</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr align="right" width="50" size=3 noshade>      </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr align="right" width="50" size=3 noshade>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr align="right" width="50" size=3 noshade>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr align="right" width="50" size=3 noshade>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=16>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<SUP><FONT size=2 face="serif">1 </FONT></SUP><FONT size=2 face="serif">Investments at cost</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">146,589,051</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">61,840,347</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">113,098,262</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">34,956,332</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<SUP><FONT size=2 face="serif">2 </FONT></SUP><FONT size=2 face="serif">Preferred shares outstanding</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,240</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">968</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,786</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">541</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<SUP><FONT size=2 face="serif">3 </FONT></SUP><FONT size=2 face="serif">Par value per share</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.001</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.001</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<SUP><FONT size=2 face="serif">4 </FONT></SUP><FONT size=2 face="serif">Common shares outstanding</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,469,766</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,706,216</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,937,652</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,531,266</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">49</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">STATEMENTS OF OPERATIONS (unaudited)</FONT></B><BR>
<B><FONT face="serif">For the six months ended February 28, 2006</FONT></B>
<hr size="1" noshade>
<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>      <div align="left"></div></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>      <div align="left"></div></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">California</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Insured</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>      <div align="left"></div></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>      <div align="left"></div></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Insured</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>      <div align="left"></div></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>      <div align="left"></div></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Income Trust</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>      <div align="left"></div></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Income Trust II</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>      <div align="left"></div></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Income Trust</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BYM)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BBK)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>      <div align="left"></div></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BLE)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>      <div align="left"></div></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BCK)</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Investment Income</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Interest income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
            </div></TD>
        <TD align=right>
<FONT size=2 face="serif">15,123,614</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,862,331</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
            </div></TD>
        <TD align=right>
<FONT size=2 face="serif">15,233,422</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
            </div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,949,826</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Income from affiliates</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,798</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,282</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,646</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">441</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">15,126,412</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,863,613</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">15,236,068</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,950,267</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Expenses</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Investment advisory</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">1,714,497</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">817,215</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">1,521,564</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">341,694</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Transfer agent</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">7,421</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,421</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">7,421</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">7,421</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Custodian</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">52,001</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">39,882</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">59,020</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">20,843</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Reports to shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">45,121</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">19,329</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">39,183</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">9,774</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Directors/Trustees</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">21,089</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,498</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">19,564</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">6,516</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Registration</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">8,198</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,197</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">6,199</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">8,198</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Independent accountants</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">21,244</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">19,673</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">20,910</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">19,135</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Legal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">44,797</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,240</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">41,093</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">7,557</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Insurance</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">19,364</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,786</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">17,139</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">3,856</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Deferred Trustees&#146;fees</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,798</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,282</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,646</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">441</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Auction agent</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">295,024</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">119,002</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">268,447</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">61,579</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Miscellaneous</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">34,075</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,188</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">29,719</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">13,630</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total expenses excluding excise tax</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,265,629</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,086,713</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,032,905</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">500,644</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Excise tax</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">72,502</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">45,301</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total expenses</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,338,131</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,132,014</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,032,905</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">500,644</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Less fees waived by Advisor</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(623,453</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(377,176</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(414,972</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(124,252</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Less fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(6,751</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(8,750</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(7,254</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(6,182</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Less expenses reimbursed by affiliates</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(72,502</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(45,301</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net expenses</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">1,635,425</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">700,787</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">1,610,679</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">370,210</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">13,490,987</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,162,826</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">13,625,389</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,580,057</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Realized and Unrealized Gain (Loss)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gain (loss) on:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Investments</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(3,116,534</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,720,780</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,910,922</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(139,537</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Futures</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">3,960,183</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,420,846</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">3,298,868</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">846,615</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">843,649</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,141,626</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">6,209,790</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">707,078</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Net change in unrealized appreciation/depreciation on:</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Investments</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(5,145,590</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(3,149,339</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(7,633,356</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(725,737</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Futures</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">1,238,896</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">448,289</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">1,036,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">263,717</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(3,906,694</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,701,050</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(6,597,156</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(462,020</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(3,063,045</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">440,576</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(387,366</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">245,058</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><B><FONT size=2 face="serif">Dividends from Net Investment Income to</FONT></B>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Preferred Shareholders</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(3,066,557</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,242,058</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(2,828,075</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=right>
<FONT size=2 face="serif">(603,451</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR align="left" size=1 noshade>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><B><FONT size=2 face="serif">Net Increase in Net Assets Applicable to</FONT></B>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders Resulting</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">from Operations</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
            </div></TD>
        <TD align=right>
<FONT size=2 face="serif">7,361,385</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,361,344</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
            </div></TD>
        <TD align=right>
<FONT size=2 face="serif">10,409,948</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
            </div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,221,664</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <hr noshade size=3>     </TD>
  <TD>
    <hr noshade size=3>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <hr noshade size=3>
  </TD>
  <TD>
    <hr noshade size=3>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <hr noshade size=3>
  </TD>
  <TD>
    <hr noshade size=3>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <hr align="left" size=3 noshade>
  </TD>
  <TD>
    <hr noshade size=3>
  </TD>
  <TD>&nbsp; </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">50</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">STATEMENTS OF OPERATIONS (unaudited) (continued)</FONT></B><BR>
<B><FONT face="serif">For the six months ended February 28, 2006</FONT></B>
<hr size="1" noshade>
<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">California</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Florida</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">California</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Insured</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Florida</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Income</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Trust II</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Income Trust</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BZA)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BCL)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BAF)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BIE)</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Investment Income</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Interest income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,180,277</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,922,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,014,191</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,198,295</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Income from affiliates</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">522</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">682</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">775</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">414</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,180,799</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,923,182</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,014,966</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,198,709</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Expenses</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Investment advisory</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">268,701</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">528,726</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">564,145</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">267,460</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Transfer agent</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,421</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,421</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,421</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,421</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Custodian</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,328</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">33,849</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">33,304</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11,705</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Reports to shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,108</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,937</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">16,223</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,421</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Directors/Trustees</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,335</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,964</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,050</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,335</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Registration</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,194</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,132</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,198</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,194</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Independent accountants</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,959</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">19,405</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">19,476</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,958</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Legal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,580</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,482</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">16,242</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,036</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Insurance</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,563</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,946</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,366</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,554</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Deferred Trustees&#146;fees</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">522</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">682</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">775</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">414</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Auction agent</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">39,625</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">95,961</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">98,441</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">39,435</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Miscellaneous</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,398</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,112</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,815</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,398</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total expenses excluding excise tax</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">386,734</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">746,617</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">795,456</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">385,331</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Excise tax</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total expenses</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">386,734</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">746,617</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">795,456</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">385,331</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Less fees waived by Advisor</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(124,016</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(144,198</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(205,144</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(123,443</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Less fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(5,183</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(7,072</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(8,145</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(3,560</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Less expenses reimbursed by affiliates</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net expenses</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">257,535</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">595,347</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">582,167</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">258,328</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,923,264</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,327,835</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,432,799</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,940,381</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Realized and Unrealized Gain (Loss)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gain (loss) on:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Investments</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(90,119</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(150,482</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(194,039</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(30,415</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Futures</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">509,916</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,376,473</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,186,612</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">404,837</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">419,797</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,225,991</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">992,573</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">374,422</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Net change in unrealized appreciation/depreciation on:</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Investments</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(494,778</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,134,756</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,293,693</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(707,856</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Futures</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">159,054</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">426,253</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">373,428</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">128,241</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(335,724</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(708,503</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,920,265</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(579,615</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">84,073</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">517,488</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(927,692</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(205,193</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><B><FONT size=2 face="serif">Dividends from Net Investment Income to</FONT></B>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Preferred Shareholders</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(387,269</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(863,856</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(986,428</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(401,166</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR>
        <TD colspan=17>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><B><FONT size=2 face="serif">Net Increase in Net Assets Applicable to</FONT></B>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders Resulting</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">from Operations</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,620,068</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,981,467</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,518,679</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,334,022</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>       </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">51</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">New York</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Maryland</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">New Jersey</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Insured</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">New York</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">New York</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Virginia</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Municipal</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Income Trust</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Income Trust II</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BZM)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BLJ)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BSE)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BQH)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BFY)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">(BHV)</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,259,662</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,518,312</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,674,627</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,752,681</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,984,703</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">984,335</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">555</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">564</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">472</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">512</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">476</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">453</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,260,217</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,518,876</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,675,099</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,753,193</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,985,179</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">984,788</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">161,624</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">182,649</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">418,332</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">216,328</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">324,719</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">123,225</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,421</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,421</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,421</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,421</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,421</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,421</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,466</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14,892</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">26,507</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14,205</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">23,520</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14,259</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,495</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,647</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,670</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,565</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,774</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,568</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,154</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,154</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,697</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,335</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,516</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,154</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">595</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">695</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,211</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,194</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,289</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">438</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,820</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,848</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">19,255</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,892</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">19,097</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,902</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,290</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,439</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,455</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,672</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,660</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,829</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,541</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,738</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,718</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,065</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,655</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,174</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">555</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">564</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">472</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">512</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">476</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">453</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,813</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">27,583</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">73,435</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">32,515</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">58,755</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">19,260</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11,651</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11,322</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,139</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11,851</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,481</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11,419</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD>
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</TR>
<TR valign="bottom">
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        <TD align=right>
<FONT size=2 face="serif">262,425</FONT>
        </TD>
        <TD align=left>&nbsp;

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        <TD>&nbsp;
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">285,952</FONT>
        </TD>
        <TD align=left>&nbsp;

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        <TD>&nbsp;
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">599,312</FONT>
        </TD>
        <TD align=left>&nbsp;

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        <TD>&nbsp;
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">333,555</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">475,363</FONT>
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        <TD align=left>&nbsp;

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        <TD>&nbsp;
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">209,102</FONT>
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        <TD align=left>&nbsp;

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</TR>
<TR valign="bottom">
        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
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        <TD align=left>&nbsp;

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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">7,174</FONT>
        </TD>
        <TD align=left>&nbsp;

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        <TD>&nbsp;
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">9,635</FONT>
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        <TD align=left>&nbsp;

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        <TD align=left>

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        <TD align=right>
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        <TD align=left>&nbsp;

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        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
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        <TD align=left>&nbsp;

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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
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</TR>
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</TR>
<TR valign="bottom">
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<FONT size=2 face="serif">262,425</FONT>
        </TD>
        <TD align=left>&nbsp;

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        <TD>&nbsp;
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">293,126</FONT>
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        <TD align=left>&nbsp;

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        <TD align=left>

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<FONT size=2 face="serif">608,947</FONT>
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        <TD align=left>&nbsp;

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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">333,555</FONT>
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        <TD align=right>
<FONT size=2 face="serif">475,363</FONT>
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">209,102</FONT>
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</TR>
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<FONT size=2 face="serif">(74,596</FONT>
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<FONT size=2 face="serif">(84,299</FONT>
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<FONT size=2 face="serif">(152,121</FONT>
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<FONT size=2 face="serif">(88,560</FONT>
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<FONT size=2 face="serif">(56,873</FONT>
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<FONT size=2 face="serif">(7,321</FONT>
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        <TD align=left>

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<FONT size=2 face="serif">(8,867</FONT>
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        <TD align=left>

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<FONT size=2 face="serif">(6,060</FONT>
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">(8,906</FONT>
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        <TD align=left>

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<FONT size=2 face="serif">(6,114</FONT>
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">(7,174</FONT>
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">(9,635</FONT>
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        <TD align=left>

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        <TD align=right>
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        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
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        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
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</TR>
<TR valign="bottom">
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        <TD align=right>
<FONT size=2 face="serif">180,508</FONT>
        </TD>
        <TD align=left>&nbsp;

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        <TD>&nbsp;
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">194,906</FONT>
        </TD>
        <TD align=left>&nbsp;

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        <TD>&nbsp;
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">438,324</FONT>
        </TD>
        <TD align=left>&nbsp;

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        <TD>&nbsp;
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">227,652</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">377,897</FONT>
        </TD>
        <TD align=left>&nbsp;

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        <TD>&nbsp;
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">146,115</FONT>
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        <TD align=left>&nbsp;

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</TR>
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<HR noshade size=1>
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
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        <TD>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,079,709</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,323,970</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,236,775</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,525,541</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,607,282</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">838,673</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
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<HR noshade size=1>
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<HR noshade size=1>
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        <TD>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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        <TD>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(268,366</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(28,685</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(30,406</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,626</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">247,469</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">358,400</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">891,946</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">336,530</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">591,790</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">219,535</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
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        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
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        <TD>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">247,469</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">358,418</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">623,580</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">307,845</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">561,384</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">232,161</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
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        <TD>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD>
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</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(405,880</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD>&nbsp;
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">(409,777</FONT>
        </TD>
        <TD align=left>
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        <TD>&nbsp;
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">(777,666</FONT>
        </TD>
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<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD>&nbsp;
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">(410,984</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD>&nbsp;
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">(173,552</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD>&nbsp;
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">(288,409</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">78,833</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">111,964</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">281,114</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">105,351</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">188,955</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">69,638</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
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<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
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        <TD>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(327,047</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD>&nbsp;
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">(297,813</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD>&nbsp;
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">(496,552</FONT>
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        <TD align=left>
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">(305,633</FONT>
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">15,403</FONT>
        </TD>
        <TD align=left>&nbsp;

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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">(218,771</FONT>
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        <TD align=left>
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</TR>
<TR>
        <TD>
<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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        <TD>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD>
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</TR>
<TR valign="bottom">
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        <TD align=right>
<FONT size=2 face="serif">(79,578</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">60,605</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">127,028</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,212</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">576,787</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,390</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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        <TD>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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        <TD>
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</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(244,728</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD>&nbsp;
        </TD>
        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">(262,157</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD>&nbsp;
        </TD>
        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">(694,588</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD>&nbsp;
        </TD>
        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">(308,932</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(552,718</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
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        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(181,293</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
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</TR>
<TR>
        <TD>
<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">755,403</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,122,418</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,669,215</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,218,821</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,631,351</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">670,770</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
      <hr noshade size=3>       </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>       </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">52</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">STATEMENTS OF CHANGES IN NET ASSETS </FONT></B><BR>
<B><FONT face="serif">For the six months ended February 28, 2006 (unaudited) and for the year ended August 31, 2005</FONT></B>
<hr size="1" noshade>
<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD colspan=5 align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD colspan=5 align=center>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan=5 align=right>
      <center>
        <B><FONT size=2 face="serif">Insured Municipal Income Trust</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan=5 align=center>
      <center>
        <B><FONT size=2 face="serif">Municipal Bond Trust</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="5" align=right>      <center>
          <B><FONT size=2 face="serif">(BYM)</FONT></B>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan="5" align=right>
      <center>
        <B><FONT size=2 face="serif">(BBK)</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
          <center>
            <hr size="1" noshade>
        </center></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Increase in Net Assets Applicable to</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Operations:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,490,987</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">26,962,373</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,162,826</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,271,182</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">843,649</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,009,314</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,141,626</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">874,223</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net change in unrealized appreciation/</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">depreciation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(3,906,694</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,819,858</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,701,050</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,756,697</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left">&nbsp; &nbsp;<FONT size=2 face="serif">Dividends from net investment income to</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">preferred shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(3,066,557</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(4,321,472</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,242,058</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,719,239</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase in net assets applicable to common</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">shareholders resulting from operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,361,385</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">50,470,073</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,361,344</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,182,863</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Dividends from net investment income</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(10,038,304</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(24,518,210</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(5,263,446</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(10,495,566</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Capital Share Transactions:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Reinvestment of common dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">419,066</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">423,563</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">429,604</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">284,282</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left">&nbsp; &nbsp;<FONT size=2 face="serif">Net proceeds from capital share transactions</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">419,066</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">423,563</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">429,604</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">284,282</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total increase (decrease)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,257,853</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">26,375,426</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">527,502</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,971,579</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Net Assets Applicable to Common</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Shareholders</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Beginning of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">408,640,741</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">382,265,315</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">165,863,211</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">151,891,632</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">End of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">406,382,888</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">408,640,741</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">166,390,713</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">165,863,211</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>       </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">End of period undistributed net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,100,293</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">714,167</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,886,522</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,229,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">53</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan=5 align=left>
 <center>
   <B><FONT size=2 face="serif">California Insured</FONT></B>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan=5 align=center>
      <center>
        <B><FONT size=2 face="serif">California Municipal</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD colspan=5 align=center>
      <center>
        <B><FONT size=2 face="serif">Municipal Income Trust II</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan=5 align=left>
 <center>
   <B><FONT size=2 face="serif">Municipal Income Trust</FONT></B>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan=5 align=right>
      <center>
        <B><FONT size=2 face="serif">Bond Trust</FONT></B>&nbsp;
            </center>

          <center>
      </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD colspan="5" align=left>
      <center>
        <B><FONT size=2 face="serif">(BLE)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan="5" align=right>
      <center>
        <B><FONT size=2 face="serif">(BCK)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan="5" align=right>
      <center>
        <B><FONT size=2 face="serif">(BZA)</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,625,389</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">27,426,522</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><div align="right"><FONT size=2 face="serif">&#36;</FONT>
        </div></TD>
        <TD align=right>
<FONT size=2 face="serif">2,580,057</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,195,140</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><div align="right"><FONT size=2 face="serif">&#36;</FONT>
        </div></TD>
        <TD align=right>
<FONT size=2 face="serif">1,923,264</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,789,700</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,209,790</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,457,128</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

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        <TD align=right>
<FONT size=2 face="serif">707,078</FONT>
        </TD>
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<FONT size=2 face="serif">419,797</FONT>
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<FONT size=2 face="serif">752,518</FONT>
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<FONT size=2 face="serif">(6,597,156</FONT>
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<FONT size=2 face="serif">30,064,319</FONT>
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<FONT size=2 face="serif">(462,020</FONT>
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<FONT size=2 face="serif">7,790,878</FONT>
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<FONT size=2 face="serif">4,289,483</FONT>
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<FONT size=2 face="serif">(2,828,075</FONT>
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<FONT size=2 face="serif">(508,138</FONT>
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<FONT size=2 face="serif">10,409,948</FONT>
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<FONT size=2 face="serif">2,221,664</FONT>
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<FONT size=2 face="serif">11,134,908</FONT>
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<FONT size=2 face="serif">1,620,068</FONT>
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<FONT size=2 face="serif">8,323,563</FONT>
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<FONT size=2 face="serif">(11,472,071</FONT>
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<FONT size=2 face="serif">1,020,426</FONT>
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<FONT size=2 face="serif">148,442</FONT>
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<FONT size=2 face="serif">34,661</FONT>
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<FONT size=2 face="serif">74,722</FONT>
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<FONT size=2 face="serif">84,197</FONT>
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<FONT size=2 face="serif">&#151;</FONT>
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<FONT size=2 face="serif">1,020,426</FONT>
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<FONT size=2 face="serif">148,442</FONT>
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<FONT size=2 face="serif">34,661</FONT>
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<FONT size=2 face="serif">74,722</FONT>
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<FONT size=2 face="serif">84,197</FONT>
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        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
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<FONT size=2 face="serif">(41,697</FONT>
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<FONT size=2 face="serif">32,250,338</FONT>
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<FONT size=2 face="serif">330,616</FONT>
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<FONT size=2 face="serif">6,465,696</FONT>
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<FONT size=2 face="serif">101,380</FONT>
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<FONT size=2 face="serif">5,120,293</FONT>
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        <TD colspan=23>&nbsp;

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  <TD colspan=23>&nbsp;</TD>
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  <TD colspan=23>&nbsp;</TD>
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        <TD align=right>
<FONT size=2 face="serif">359,020,144</FONT>
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">326,769,806</FONT>
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        <TD align=right>
<FONT size=2 face="serif">80,288,963</FONT>
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        <TD align=left>

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        <TD align=right>
<FONT size=2 face="serif">73,823,267</FONT>
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        <TD align=left>&nbsp;

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        <TD align=right>
<FONT size=2 face="serif">54,265,399</FONT>
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        <TD align=left>&nbsp;

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        <TD align=right>
<FONT size=2 face="serif">49,145,106</FONT>
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<FONT size=2 face="serif">&#36;</FONT>
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<FONT size=2 face="serif">358,978,447</FONT>
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<FONT size=2 face="serif">80,619,579</FONT>
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<FONT size=2 face="serif">&#36;</FONT>
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<FONT size=2 face="serif">80,288,963</FONT>
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<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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<FONT size=2 face="serif">54,366,779</FONT>
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<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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<FONT size=2 face="serif">54,265,399</FONT>
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        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,921,666</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,596,423</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">218,883</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">167,986</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">972,119</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,039,009</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">54</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">STATEMENTS OF CHANGES IN NET ASSETS (continued)</FONT></B><BR>
<B><FONT face="serif">For the six months ended February 28, 2006 (unaudited) and for the year ended August 31, 2005</FONT></B>
<hr size="1" noshade>
<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD colspan=5 align=center>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD colspan=5 align=center>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan=5 align=center>
      <center>
        <B><FONT size=2 face="serif">California</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan=5 align=center>
      <center>
        <B><FONT size=2 face="serif">Florida Insured</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan=5 align=center>
      <center>
        <B><FONT size=2 face="serif">Municipal Income Trust II</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan=5 align=center>
      <center>
        <B><FONT size=2 face="serif">Municipal Income Trust</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="5" align=right>
      <center>
        <B><FONT size=2 face="serif">(BCL)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan="5" align=right>
      <center>
        <B><FONT size=2 face="serif">(BAF)</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
          <center>
            <HR align="center" size=1 noshade>
      </center></TD>
        <TD>
          <center>
            <HR align="center" size=1 noshade>
      </center></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
          <center>
            <HR align="center" size=1 noshade>
      </center></TD>
        <TD>
          <center>
            <HR align="center" size=1 noshade>
      </center></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Increase (Decrease) in Net Assets Applicable</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">to Common Shareholders</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Operations</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,327,835</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,708,704</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,432,799</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,867,352</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,225,991</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,524,025</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">992,573</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(681,521</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net change in unrealized appreciation/</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">depreciation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(708,503</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,483,507</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,920,265</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,055,515</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends from net investment income to</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">preferred shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(863,856</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,167,105</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(986,428</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,374,732</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase in net assets applicable to common</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">shareholders resulting from operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,981,467</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,501,081</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,518,679</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,866,614</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Dividends from net investment income</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(3,137,980</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(7,533,548</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(3,187,730</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(7,850,329</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Capital Share Transactions:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Reinvestment of common dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">77,965</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">149,885</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left">&nbsp; &nbsp;<FONT size=2 face="serif">Net proceeds from capital share transactions</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">77,965</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">149,885</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total increase (decrease)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">843,487</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,967,533</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(591,086</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,166,170</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Net Assets Applicable to Common</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Shareholders</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Beginning of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">123,919,757</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">109,952,224</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">133,220,526</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">125,054,356</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">End of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">124,763,244</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">123,919,757</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">132,629,440</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">133,220,526</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>       </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">End of period undistributed net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">442,120</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">116,121</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">554,292</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">295,651</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">55</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD colspan=4 align=right>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD colspan=4 align=right>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan=5 align=right>
      <center>
        <B><FONT size=2 face="serif">Florida</FONT></B>&nbsp;
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan="5" align=right>
      <center>
        <B><FONT size=2 face="serif">Maryland</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan=5 align=right>
      <center>
        <B><FONT size=2 face="serif">New Jersey</FONT></B>&nbsp;
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan=5 align=center>
      <center>
        <B><FONT size=2 face="serif">Municipal Bond Trust</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan=5 align=left>
 <center>
   <B><FONT size=2 face="serif">Municipal Bond Trust</FONT></B>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan=5 align=center>
      <center>
        <B><FONT size=2 face="serif">Municipal Bond Trust</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan="5" align=left>
      <center>
        <B><FONT size=2 face="serif">(BIE)</FONT></B>&nbsp;
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan="5" align=right>
      <center>
        <B><FONT size=2 face="serif">(BZM)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan="5" align=right>
      <center>
        <B><FONT size=2 face="serif">(BLJ)</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
          <center>
    </center></TD>
        <TD>
          <center>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </center></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
          <center>
    </center></TD>
        <TD>
          <center>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </center></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
          <center>
    </center></TD>
        <TD>
          <center>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </center></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
          <center>
    </center></TD>
        <TD>
          <center>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </center></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
          <center>
    </center></TD>
        <TD>
          <center>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </center></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,940,381</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,829,071</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,079,709</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,160,791</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,323,970</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,631,055</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">374,422</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(167,030</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">247,469</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,626</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">358,418</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(117,411</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(579,615</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,559,463</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(327,047</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,631,626</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(297,813</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,499,235</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(401,166</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(535,210</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(244,728</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(332,992</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(262,157</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(347,892</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
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        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,334,022</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,686,294</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">755,403</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,475,051</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,122,418</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,664,987</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,545,863</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(3,090,102</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(864,160</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,725,808</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,071,437</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,140,066</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
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        <TD>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
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        <TD>
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">42,600</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,494</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">47,437</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">27,820</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">65,787</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,610</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
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        <TD>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">42,600</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,494</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">47,437</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">27,820</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">65,787</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,610</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
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<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD>
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        <TD>
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(169,241</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,606,686</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(61,320</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,777,063</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">116,768</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,543,531</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
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        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=23>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">53,989,502</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">51,382,816</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">32,491,797</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">30,714,734</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">36,927,667</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">33,384,136</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">53,820,261</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">53,989,502</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">32,430,477</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">32,491,797</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">37,044,435</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36,927,667</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
      <hr noshade size=3>       </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,138,964</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,145,612</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">636,619</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">665,798</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">754,937</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">764,561</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">56</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT face="serif">STATEMENTS OF CHANGES IN NET ASSETS (continued)</FONT></B><BR>
<B><FONT face="serif">For the six months ended February 28, 2006 (unaudited) and for the year ended August 31, 2005</FONT></B>
<hr size="1" noshade>
<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD colspan=5 align=center>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD colspan=4 align=right>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan=5 align=center>
      <center>
        <B><FONT size=2 face="serif">New York Insured</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan=5 align=right>
      <center>
        <B><FONT size=2 face="serif">New York</FONT></B>&nbsp;
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan=5 align=center>
      <center>
        <B><FONT size=2 face="serif">Municipal Income Trust</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan=5 align=center>
      <center>
        <B><FONT size=2 face="serif">Municipal Bond Trust</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="5" align=right>
      <center>
        <B><FONT size=2 face="serif">(BSE)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan="5" align=right>
      <center>
        <B><FONT size=2 face="serif">(BQH)</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Increase (Decrease) in Net Assets Applicable</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">to Common Shareholders</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Operations:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,236,775</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,460,542</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,525,541</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,039,131</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">623,580</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">662,348</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">307,845</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(150,481</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net change in unrealized appreciation/</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">depreciation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(496,552</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,857,505</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(305,633</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,723,892</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends from net investment income to</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">preferred shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(694,588</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(919,843</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(308,932</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(410,012</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase in net assets applicable to common</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">shareholders resulting from operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,669,215</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,060,552</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,218,821</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,202,530</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Dividends from net investment income</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,361,069</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(5,802,703</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1,250,255</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2,498,924</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Capital Share Transactions:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Reinvestment of common dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">158,867</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">335,680</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">82,660</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net proceeds from capital share transactions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">158,867</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">335,680</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">82,660</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total increase</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">467,013</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,593,529</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">51,226</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,703,606</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Net Assets Applicable to</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">Common Shareholders</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Beginning of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">98,853,468</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">91,259,939</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">43,460,379</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">40,756,773</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">End of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">99,320,481</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">98,853,468</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">43,511,605</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">43,460,379</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>       </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>
      <hr noshade size=3>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">End of period undistributed (distributions in excess of)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">296,304</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">115,186</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">772,636</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">806,282</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">57</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<hr size="1" noshade>

<TABLE width="55%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD colspan=4 align=right>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD colspan=5 align=right>
      <center>
        <B><FONT size=2 face="serif">New York</FONT></B>&nbsp;
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan="5" align=right>
      <center>
        <B><FONT size=2 face="serif">Virginia</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD colspan=5 align=center>
      <center>
        <B><FONT size=2 face="serif">Municipal Income Trust II</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan=5 align=left>
 <center>
   <B><FONT size=2 face="serif">Municipal Bond Trust</FONT></B>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD colspan="5" align=left>
      <center>
        <B><FONT size=2 face="serif">(BFY)</FONT></B>&nbsp;
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan="5" align=right>
      <center>
        <B><FONT size=2 face="serif">(BHV)</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2006</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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<FONT size=2 face="serif">75,193,283</FONT>
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<FONT size=2 face="serif">76,069,305</FONT>
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<FONT size=2 face="serif">25,030,362</FONT>
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<FONT size=2 face="serif">&#36;</FONT>
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<FONT size=2 face="serif">24,965,790</FONT>
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</TR>
<TR valign="bottom">
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<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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        <TD align=right>
<FONT size=2 face="serif">217,626</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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        <TD align=right>
<FONT size=2 face="serif">(81,609</FONT>
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<FONT size=2 face="serif">)</FONT>&nbsp;
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<FONT size=2 face="serif">&#36;</FONT>&nbsp;
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        <TD align=right>
<FONT size=2 face="serif">640,936</FONT>
        </TD>
        <TD align=left>&nbsp;

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        <TD>&nbsp;
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<FONT size=2 face="serif">&#36;</FONT>
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        <TD align=right>
<FONT size=2 face="serif">648,328</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">58</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (BYM)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center><center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan="2" align=left>

          <center>
    </center> <center>
      <B><FONT size=1 face="serif">For the period</FONT></B>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>       <center>
      <B><FONT size=1 face="serif">Six Months Ended</FONT></B>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan=5 align=right>
      <center>
        <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan="2" align=left>

          <center>
    </center> <center>
      <B><FONT size=1 face="serif">October 31, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">          <center>
            <B><FONT size=1 face="serif">February 28,
          2006</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD colspan=5>
<HR align="center" size=1 noshade>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
          <center>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </center></TD>
        <TD colspan="2">
          <center>
    </center> <center>
      <B><FONT size=1 face="serif">through</FONT></B>
    </center></TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <center>
        <B><FONT size=1 face="serif">(unaudited)</FONT></B>
              </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=1 face="serif">2005</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=1 face="serif">2004</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan="2" align=left>

          <center>
    </center>
      <center>
        <B><FONT size=1 face="serif">August 31, 2003</FONT></B>
              </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.61</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.62</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><div align="right"><FONT size=2 face="serif">&#36;</FONT>

        </div></TD>
        <TD align=right>
<FONT size=2 face="serif">13.64</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT></TD>
        <TD align=left><FONT size=2 face="serif">&nbsp;</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.51</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.03</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.06</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.83</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.07</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.94</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.62</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left">&nbsp; &nbsp;<FONT size=2 face="serif">Dividends to preferred shareholders from net investment income</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.17</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase from investment operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.93</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.92</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends to common shareholders from net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.38</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.70</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.13</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, end of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.51</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.61</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><div align="right"><FONT size=2 face="serif">&#36;</FONT>

        </div></TD>
        <TD align=right>
<FONT size=2 face="serif">14.62</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.64</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="right" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market price, end of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.23</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.43</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><div align="right"><FONT size=2 face="serif">&#36;</FONT>

        </div></TD>
        <TD align=right>
<FONT size=2 face="serif">13.97</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.51</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(5.25</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">17.69</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10.57</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(5.39</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.83</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.83</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.84</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.77</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.83</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.83</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.84</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.79</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses including excise tax and before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.18</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.16</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses excluding excise tax and before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.16</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.81</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.83</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.30</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.55</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.57</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.55</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.26</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.74</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.73</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.40</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">399,645</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">394,876</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">380,007</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">372,269</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">57</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">57</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">46</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">406,383</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">408,641</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">382,265</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">356,438</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">228,975</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">228,975</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">228,975</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">228,975</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">69,375</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">69,622</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">66,739</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">63,919</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">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 period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s 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></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">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></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT></P>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the 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>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">59</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock Municipal Bond Trust (BBK)</FONT></B></P>
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        </TD>
        <TD align=center>&nbsp;</TD>
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        </TD>
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        </TD>
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        <TD align=left>

          <center>
    </center></TD>
        <TD align=center><center>
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          <center>
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        <TD>
          <center>
    </center></TD>
        <TD colspan="2" align=left>       <center>
    <B><FONT size=1 face="serif">For the period</FONT></B>        </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>       <center>
    <B><FONT size=1 face="serif">Six Months Ended</FONT></B>      </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD colspan="9" align=left>
      <center>
        <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan="2" align=left>      <center>
    <B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B>    </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">          <center>
          <B><FONT size=1 face="serif">February 28,
    2006</FONT></B>       </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD>
<HR align="center" size=1 noshade>
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          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan="2">          <center>
    <B><FONT size=1 face="serif">through</FONT></B>       </center></TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <center>
        <B><FONT size=1 face="serif">(unaudited)</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=1 face="serif">2005</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=1 face="serif">2004</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=1 face="serif">2003</FONT></B>
            </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan="2" align=left>
      <center>
        <B><FONT size=1 face="serif">August 31, 2002</FONT></B>
            </center></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.36</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.76</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT><SUP></SUP>
        </TD>
        <TD align=left><SUP><FONT size=2 face="serif">2</FONT></SUP>

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.61</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.21</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.25</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.31</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.04</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.36</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.74</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.74</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.52</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends and distributions to preferred shareholders:</FONT>&nbsp;
            </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.17</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase from investment operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.53</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.40</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.91</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.43</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.80</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends and distributions to common shareholders:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.52</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.04</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.04</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.25</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized gains</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.05</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.52</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.04</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.04</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.25</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.01</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.01</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, end of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.37</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.36</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.76</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market price, end of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">17.15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">17.18</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.61</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.66</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.90</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">25.75</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.87</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.20</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
<HR noshade size=3>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.87</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.87</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.89</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.91</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.88</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.88</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.92</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.91</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses including excise tax and before fees waived</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.40</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.35</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.37</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.41</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.32</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses excluding excise tax and before fees waived</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.34</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.35</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.37</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.41</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.32</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.62</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.73</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.28</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.66</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.35</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.55</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.67</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.53</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.65</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.73</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.99</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.82</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">163,035</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">158,814</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">152,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">148,670</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">144,196</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">42</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">70</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">65</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">22</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">166,391</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">165,863</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">151,892</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">142,951</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">149,253</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">90,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">90,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">90,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">90,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">90,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">70,977</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">70,824</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">66,963</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">64,491</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">66,233</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1">
<SUP><FONT size=1 face="serif">1</FONT></SUP><FONT size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</FONT>
<P>
<SUP><FONT size=1 face="serif">2</FONT></SUP><FONT size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3</FONT></SUP><FONT size=1 face="serif">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 period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s 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></P>
<P>
<SUP><FONT size=1 face="serif">4</FONT></SUP><FONT size=1 face="serif">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></P>
<P>
<SUP><FONT size=1 face="serif">5</FONT></SUP><FONT size=1 face="serif">Annualized.</FONT></P>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the 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>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">60</FONT></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="41%" align=left>&nbsp;

        </TD>
        <TD width="1%" align=center>&nbsp;

        </TD>
        <TD width="7%" align=center>
<B></B>
        </TD>
        <TD width="4%" align=center>&nbsp;

        </TD>
        <TD width="1%" align=center>

        </TD>
        <TD width="7%" align=center>

        </TD>
        <TD width="4%" align=center>&nbsp;

        </TD>
        <TD width="1%" align=center>&nbsp;

        </TD>
        <TD width="7%" align=center>

        </TD>
        <TD width="4%" align=center>&nbsp;

        </TD>
        <TD width="1%" align=center>

        </TD>
        <TD width="7%" align=center>

        </TD>
        <TD width="4%" align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center><b><font size=1 face="serif">For the period</font></b>
        </TD>
        <TD width="3%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><font size=1 face="serif">Six Months Ended</font></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD colspan="8" align=center>
      <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><font size=1 face="serif">July 30, 2002</font></B><b><sup><font size=1 face="serif">1</font></sup></b>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD colspan="2" align="center"><b><font size=1 face="serif">February 28, 2006</font></b>
        </TD>
        <TD align="center">
        </TD>
        <TD align="center">
<HR noshade size=1>     </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>     </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>     </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">&nbsp;

        </TD>
        <TD colspan="2" align="center"><b><font size=1 face="serif">through</font></b>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=1 face="serif">(unaudited)</FONT></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=1 face="serif">2005</FONT></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=1 face="serif">2004</FONT></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=1 face="serif">2003</FONT></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=1 face="serif">August 31, 2002</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD width="1%" align="left">
<HR noshade size=1>     </TD>
        <TD width="7%">
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.34</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.40</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=2 face="serif">2</font></sup>

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.59</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.03</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.38</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.95</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.07</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends to preferred shareholders from net</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.17</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase (decrease) from investment operations</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.46</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.41</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.06</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends to common shareholders from net investment</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.50</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, end of period</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.71</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.34</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.40</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market price, end of period</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.69</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.73</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.92</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.11</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9.59</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">20.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(6.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.92</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.92</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.65</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.65</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.16</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.17</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.20</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.17</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.80</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.80</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.37</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.82</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.62</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.61</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.69</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<font size=2 face="serif">&#151;</font>
        </TD>
        <TD align=left><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.18</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.85</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.76</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.46</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.82</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">352,331</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">342,827</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">325,680</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">318,014</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">307,165</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">31</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">49</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">64</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">118</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">358,978</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">359,020</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">326,770</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">302,337</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">323,483</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">205,550</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">205,550</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">205,550</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">205,550</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">68,671</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">68,672</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">64,747</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">61,774</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>

<table width="100%"  border="0" cellspacing="4" cellpadding="0">
  <tr>
    <td colspan="2"><HR align="left" width="10%" size=1 noshade></td>
  </tr>
  <tr align="left">
    <td width="2%"><sup><font size=1 face="serif">1</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td width="98%"><font size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</font></td>
  </tr>
  <tr align="left">
    <td><sup><font size=1 face="serif">2</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</font></td>
  </tr>
  <tr align="left">
    <td><sup><font size=1 face="serif">3</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">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 period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s 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>
  </tr>
  <tr align="left">
    <td><sup><font size=1 face="serif">4</font></sup></td>
    <td><font size=1 face="serif">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>
  </tr>
  <tr align="left">
    <td><sup><font size=1 face="serif">5</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Annualized.</font></td>
  </tr>
  <tr align="left">
    <td><sup><font size=1 face="serif">6</font></sup></td>
    <td><font size=1 face="serif">These annualized ratios are not indicative of future expense ratios, due to the short operating history of the Trust.</font></td>
  </tr>
</table>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the 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>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">61</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock California Insured Municipal Income Trust (BCK</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=49% align=left>&nbsp;

        </TD>
        <TD width=1% align=center>&nbsp;

        </TD>
        <TD width=8% align=center>
<B></B>
        </TD>
        <TD width=4% align=center>&nbsp;

        </TD>
        <TD width=1% align=center>

        </TD>
        <TD width=8% align=center>

        </TD>
        <TD width=4% align=center>&nbsp;

        </TD>
        <TD width=1% align=center>&nbsp;

        </TD>
        <TD width=8% align=center>

        </TD>
        <TD width=4% align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center><b><font size=1 face="serif">For the period</font></b>

        </TD>
        <TD width=3% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><font size=1 face="serif">Six Months Ended</font></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD colspan="5" align=center>
      <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center><b><font size=1 face="serif">October 31, 2002</font></b><b><sup><font size=1 face="serif">1</font></sup></b>
    </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD colspan="2" align="center"><b><font size=1 face="serif">February 28, 2006</font></b>
        </TD>
        <TD align="center">
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD colspan=4 align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">&nbsp;

        </TD>
        <TD colspan="2" align="center"><b><font size=1 face="serif">through</font></b>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=1 face="serif">(unaudited)</FONT></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=1 face="serif">2005</FONT></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=1 face="serif">2004</FONT></B>
        </TD>
        <TD align=center>&nbsp;

        </TD>
        <TD colspan="2" align=center>
      <B><FONT size=1 face="serif">August 31, 2003</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">&nbsp;

        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">&nbsp;

        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD align="center">&nbsp;

        </TD>
        <TD width="1%" align="center">
<HR noshade size=1>
        </TD>
        <TD width="8%" align="center">
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.22</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.01</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.09</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT></TD>
        <TD align=left><font size=2 face="serif">&nbsp;</font><sup><font size=2 face="serif">2</font></sup>

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.48</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.99</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.02</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.79</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.05</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.27</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.89</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends to preferred shareholders from net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">Net increase (decrease) from investment operations</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.42</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.11</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.83</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.42</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends to common shareholders:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.67</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.91</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.67</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, end of period</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.22</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.01</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.09</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market price, end of period</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.08</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.01</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(9.39</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">22.24</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.97</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(8.98</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.97</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.99</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.92</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.96</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.98</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.99</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.96</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.28</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.30</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.32</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.27</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.60</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.72</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.26</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.69</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.04</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.50</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.68</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.72</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.19</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">78,782</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">77,283</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">73,679</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">74,302</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">16</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">41</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">80,620</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">80,289</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">73,823</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">68,910</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">46,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">46,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">46,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">46,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">68,345</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">68,170</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">64,691</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">62,052</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>

<br>
<table width="100%"  border="0" cellspacing="4" cellpadding="0">
  <tr>
    <td colspan="2"><HR align="left" width="10%" size=1 noshade></td>
  </tr>
  <tr align="left" valign="top">
    <td width="3%"><sup><font size=1 face="serif">1</font></sup></td>
    <td width="97%"><font size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">2</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">3</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">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 period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s 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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">4</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">5</font></sup></td>
    <td><font size=1 face="serif">Annualized.</font></td>
  </tr>
</table>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the 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>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">&nbsp;</P>


<P align="center"><FONT size=2 face="serif">62</FONT></P>
<hr noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock California Municipal Bond Trust (BZA)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width="41%" align=left>&nbsp; </TD>
    <TD width="1%" align=center>&nbsp; </TD>
    <TD width="7%" align=center> <B></B> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center> </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center>&nbsp; </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center> </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD colspan="2" align=center><b><font size=1 face="serif">For the period</font></b> </TD>
    <TD width="3%" align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD colspan="2" align=center> <B><font size=1 face="serif">Six Months Ended</font></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="8" align=center> <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD> </TD>
    <TD colspan="2" align="center"><b><font size=1 face="serif">February 28, 2006</font></b> </TD>
    <TD align="center"> </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">&nbsp; </TD>
    <TD colspan="2" align="center"><b><font size=1 face="serif">through</font></b> </TD>
    <TD> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">(unaudited)</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2005</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2004</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2003</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">August 31, 2002</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD> </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD width="1%" align="left">
      <HR noshade size=1>
    </TD>
    <TD width="7%">
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
  </TR>
<TR valign="bottom">
        <TD width="41%" align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
        <TD width="7%" align=left>

        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD width="1%" align=left>

        </TD>
        <TD width="7%" align=left>

        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
        <TD width="7%" align=left>

        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
        <TD width="7%" align=left>

        </TD>
        <TD width="4%" align=left>&nbsp;

        </TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
        <TD width="7%" align=left>

        </TD>
        <TD width="3%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.19</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.67</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.71</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.87</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=2 face="serif">2</font></sup>

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.58</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.13</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.18</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.03</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.50</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.92</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.21</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.63</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase (decrease) from investment operations</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.49</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.48</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.99</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.13</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.89</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends and distributions to common shareholders:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.48</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.96</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.96</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.48</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.96</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, end of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.19</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.67</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.71</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.87</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market price, end of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.56</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.33</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.90</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.58</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4.49</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">25.31</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.80</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2.92</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.97</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.99</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.46</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.50</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.55</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.53</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">indirectly and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.26</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.30</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.87</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.99</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.75</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.46</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.98</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.49</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.58</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.49</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.80</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.32</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.38</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.41</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.26</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">53,388</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">51,898</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">48,928</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">49,107</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">47,390</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">22</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">24</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">22</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">18</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">54,367</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">54,265</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">49,145</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">45,940</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">49,834</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,975</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,975</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,975</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,975</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,975</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">70,347</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">70,263</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">65,990</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">63,318</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">66,569</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<table width="100%"  border="0" cellspacing="4" cellpadding="0">
  <tr>
    <td colspan="2"><HR align="left" width="10%" size=1 noshade></td>
  </tr>
  <tr align="left" valign="top">
    <td width="3%"><sup><font size=1 face="serif">1</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td width="97%"><font size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">2</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">3</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">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 period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s 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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">4</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">5</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Annualized.</font></td>
  </tr>
</table>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the 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>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">63</FONT></P>

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<P>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock California Municipal Income Trust II (BCL)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width="41%" align=left>&nbsp; </TD>
    <TD width="1%" align=center>&nbsp; </TD>
    <TD width="7%" align=center> <B></B> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center> </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center>&nbsp; </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center> </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD colspan="2" align=center><b><font size=1 face="serif">For the period</font></b> </TD>
    <TD width="3%" align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD colspan="2" align=center> <B><font size=1 face="serif">Six Months Ended</font></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="8" align=center> <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">July 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD> </TD>
    <TD colspan="2" align="center"><b><font size=1 face="serif">February 28, 2006</font></b> </TD>
    <TD align="center"> </TD>
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    <TD align="center">&nbsp; </TD>
    <TD colspan="2" align="center"><b><font size=1 face="serif">through</font></b> </TD>
    <TD> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">(unaudited)</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2005</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2004</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2003</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">August 31, 2002</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD> </TD>
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    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
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    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
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    </TD>
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    <TD width="7%">
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    </TD>
    <TD>&nbsp; </TD>
  </TR>
<TR valign="bottom">
        <TD width=41% align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=7% align=left>

        </TD>
        <TD width=4% align=left>&nbsp;

        </TD>
        <TD width=1% align=left>

        </TD>
        <TD width=7% align=left>

        </TD>
        <TD width=4% align=left>&nbsp;

        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=7% align=left>

        </TD>
        <TD width=4% align=left>&nbsp;

        </TD>
        <TD width=1% align=left>

        </TD>
        <TD width=7% align=left>

        </TD>
        <TD width=4% align=left>&nbsp;

        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=7% align=left>

        </TD>
        <TD width=3% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.52</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.77</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12.76</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.42</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=2 face="serif">2</font></sup>

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.54</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.09</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.09</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.02</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.02</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.07</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.97</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.51</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends to preferred shareholders from net</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
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        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
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        <TD>
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        <TD>
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        <TD align=left>
<FONT size=2 face="serif">Net increase (decrease) from investment operations</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.50</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.69</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.98</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.58</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
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        </TD>
        <TD>
<HR noshade size=1>
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        <TD align="left">
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        <TD>
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        </TD>
        <TD>
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        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD align="left">
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        <TD>
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        <TD>
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</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends to common shareholders from net investment</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.39</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.97</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.97</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD align="left">
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
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        <TD align="left">
<HR noshade size=1>
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        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, end of period</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.63</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.52</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.77</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12.76</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.42</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market price, end of period</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.81</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.26</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.71</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.01</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.01</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.79</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.21</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(6.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.98</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.05</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.97</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.05</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.05</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.99</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.05</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.24</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.26</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.30</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.20</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">indirectly and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.16</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.46</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.97</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.38</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.35</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.43</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.58</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.63</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<font size=2 face="serif">&#151;</font>
        </TD>
        <TD align=left><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.73</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.46</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.39</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.75</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.35</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">121,907</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">116,754</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">109,252</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">110,286</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">105,895</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">19</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">85</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">124,763</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">123,920</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">109,952</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">101,738</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">112,576</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">71,950</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">71,950</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">71,950</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">71,950</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">68,362</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">68,063</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">63,209</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">60,353</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<table width="100%"  border="0" cellspacing="4" cellpadding="0">
  <tr>
    <td colspan="2"><HR align="left" width="10%" size=1 noshade></td>
  </tr>
  <tr align="left" valign="top">
    <td width="3%"><sup><font size=1 face="serif">1</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td width="97%"><font size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">2</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">3</font></sup></td>
    <td><font size=1 face="serif">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 period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s 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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">4</font></sup></td>
    <td><font size=1 face="serif">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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">5</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Annualized.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">6</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">These annualized ratios are not indicative of future expense ratios, due to the short operating history of the Trust.</font></td>
  </tr>
</table>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the 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>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">64</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock Florida Insured Municipal Income Trust (BAF)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=49% align=left>&nbsp; </TD>
    <TD width=1% align=center>&nbsp; </TD>
    <TD width=8% align=center> <B></B> </TD>
    <TD width=4% align=center>&nbsp; </TD>
    <TD width=1% align=center> </TD>
    <TD width=8% align=center> </TD>
    <TD width=4% align=center>&nbsp; </TD>
    <TD width=1% align=center>&nbsp; </TD>
    <TD width=8% align=center> </TD>
    <TD width=4% align=center>&nbsp; </TD>
    <TD colspan="2" align=center><b><font size=1 face="serif">For the period</font></b> </TD>
    <TD width=3% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD colspan="2" align=center> <B><font size=1 face="serif">Six Months Ended</font></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="5" align=center> <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center><B><FONT size=1 face="serif">October 31, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD> </TD>
    <TD colspan="2" align="center"><b><font size=1 face="serif">February 28, 2006</font></b> </TD>
    <TD align="center"> </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD colspan=4 align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">&nbsp; </TD>
    <TD colspan="2" align="center"><b><font size=1 face="serif">through</font></b> </TD>
    <TD> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">(unaudited)</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2005</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2004</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">August 31, 2003</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD> </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">&nbsp; </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">&nbsp; </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">&nbsp; </TD>
    <TD width="1%" align="center">
      <HR noshade size=1>
    </TD>
    <TD width="8%" align="center">
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
  </TR>
<TR valign="bottom">
        <TD width=49% align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=8% align=left>

        </TD>
        <TD width=4% align=left>&nbsp;

        </TD>
        <TD width=1% align=left>

        </TD>
        <TD width=8% align=left>

        </TD>
        <TD width=4% align=left>&nbsp;

        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=8% align=left>

        </TD>
        <TD width=4% align=left>&nbsp;

        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=8% align=left>

        </TD>
        <TD width=3% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.26</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.34</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.74</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=2 face="serif">2</font></sup>

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.50</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.02</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.02</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.96</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.64</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.47</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.16</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase from investment operations</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.29</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.82</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.58</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.22</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends and distributions to common shareholders:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.67</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.98</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.67</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, end of period</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.19</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.26</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.34</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.74</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market price, end of period</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.91</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.30</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(6.68</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.82</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(7.78</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.89</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.91</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.83</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.91</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.87</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.22</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.25</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.17</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.83</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.85</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.13</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.39</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.52</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.52</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.31</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.79</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.61</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.85</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">130,844</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">129,413</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left><font size=2 face="serif">&#36;</font>
        </TD>
        <TD align=right><font size=2 face="serif">125,315</font></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">124,543</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">50</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">132,629</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">133,221</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left><font size=2 face="serif">&#36;</font>
        </TD>
        <TD align=right><font size=2 face="serif">125,054</font></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">119,778</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">76,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">76,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left><font size=2 face="serif">&#36;</font>
        </TD>
        <TD align=right><font size=2 face="serif">76,000</font></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">76,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">68,630</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">68,826</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left><font size=2 face="serif">&#36;</font>
        </TD>
        <TD align=right><font size=2 face="serif">66,137</font></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">64,404</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<table width="100%"  border="0" cellspacing="4" cellpadding="0">
  <tr>
    <td colspan="2"><HR align="left" width="10%" size=1 noshade></td>
  </tr>
  <tr align="left" valign="top">
    <td width="3%"><sup><font size=1 face="serif">1</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td width="97%"><font size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">2</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">3</font></sup></td>
    <td><font size=1 face="serif">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 period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s 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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">4</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">5</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Annualized.</font></td>
  </tr>
</table>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the 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>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">65</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock Florida Municipal Bond Trust (BIE)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width="41%" align=left>&nbsp; </TD>
    <TD width="1%" align=center>&nbsp; </TD>
    <TD width="7%" align=center> <B></B> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center> </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center>&nbsp; </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center> </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD colspan="2" align=center><b><font size=1 face="serif">For the period</font></b> </TD>
    <TD width="3%" align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD colspan="2" align=center> <B><font size=1 face="serif">Six Months Ended</font></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="8" align=center> <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD> </TD>
    <TD colspan="2" align="center"><b><font size=1 face="serif">February 28, 2006</font></b> </TD>
    <TD align="center"> </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">&nbsp; </TD>
    <TD colspan="2" align="center"><b><font size=1 face="serif">through</font></b> </TD>
    <TD> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">(unaudited)</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2005</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2004</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2003</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">August 31, 2002</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD> </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD width="1%" align="left">
      <HR noshade size=1>
    </TD>
    <TD width="7%">
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
  </TR>
<TR valign="bottom">
        <TD width=41% align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD width=1% align=left>

        </TD>
        <TD width=7% align=left>

        </TD>
        <TD width=4% align=left>&nbsp;

        </TD>
        <TD width=1% align=left>

        </TD>
        <TD width=7% align=left>

        </TD>
        <TD width=4% align=left>&nbsp;

        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=7% align=left>

        </TD>
        <TD width=4% align=left>&nbsp;

        </TD>
        <TD width=1% align=left>

        </TD>
        <TD width=7% align=left>

        </TD>
        <TD width=4% align=left>&nbsp;

        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=7% align=left>

        </TD>
        <TD width=3% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.31</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.53</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.52</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.90</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=2 face="serif">2</font></sup>

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.59</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.26</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.71</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.88</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.43</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.68</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders:</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.16</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase from investment operations</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.41</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.71</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.96</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.61</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.92</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends and distributions to common shareholders:</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.47</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.92</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.47</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.98</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, end of period</FONT>&nbsp;
        </TD>
        <TD align=left><font size=2 face="serif">&#36;</font>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.25</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.31</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.53</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.52</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.90</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market price, end of period</FONT>&nbsp;
        </TD>
        <TD align=left><font size=2 face="serif">&#36;</font>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.90</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.95</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.17</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.55</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left><FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.92</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">19.59</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11.82</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(2.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.98</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.05</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.99</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.05</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.46</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.49</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.50</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.53</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.35</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.24</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.62</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.52</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.53</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.59</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.49</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.83</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4.87</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD align=left><font size=2 face="serif">&#36;</font>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">53,202</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">52,870</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">50,422</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">49,915</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">46,792</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">19</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left><font size=2 face="serif">&#36;</font>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">53,820</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">53,990</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">51,383</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">48,042</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">49,284</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left><font size=2 face="serif">&#36;</font>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,775</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,775</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,775</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,775</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,775</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD align=left><font size=2 face="serif">&#36;</font>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">70,202</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">70,343</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">68,147</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">65,340</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">66,383</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<table width="100%"  border="0" cellspacing="4" cellpadding="0">
  <tr>
    <td colspan="2"><HR align="left" width="10%" size=1 noshade></td>
  </tr>
  <tr align="left" valign="top">
    <td width="3%"><sup><font size=1 face="serif">1</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td width="97%"><font size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">2</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">3</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">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 period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s 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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">4</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">5</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Annualized.</font></td>
  </tr>
</table>
<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the 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>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">66</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>

<P>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock Maryland Municipal Bond Trust (BZM)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width="41%" align=left>&nbsp; </TD>
    <TD width="1%" align=center>&nbsp; </TD>
    <TD width="7%" align=center> <B></B> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center> </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center>&nbsp; </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center> </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD colspan="2" align=center><b><font size=1 face="serif">For the period</font></b> </TD>
    <TD width="3%" align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD colspan="2" align=center> <B><font size=1 face="serif">Six Months Ended</font></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="8" align=center> <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD> </TD>
    <TD colspan="2" align="center"><b><font size=1 face="serif">February 28, 2006</font></b> </TD>
    <TD align="center"> </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">&nbsp; </TD>
    <TD colspan="2" align="center"><b><font size=1 face="serif">through</font></b> </TD>
    <TD> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">(unaudited)</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2005</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2004</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2003</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">August 31, 2002</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD> </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD width="1%" align="left">
      <HR noshade size=1>
    </TD>
    <TD width="7%">
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.11</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.24</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.36</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.76</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=2 face="serif">2</font></sup>

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
      <hr noshade size=1>       </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.54</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.07</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.06</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.07</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.25</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.04</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.83</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.76</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.45</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.53</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.17</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase from investment operations</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.38</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.73</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.74</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.51</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends and distributions to common shareholders:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.43</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.86</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.86</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.84</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.21</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.04</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.43</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.86</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.86</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.88</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.21</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;      </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, end of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.06</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.11</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.24</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.36</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.76</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market price, end of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">17.20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.96</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.99</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.90</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.95</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10.68</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12.53</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.31</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.32</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.13</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.18</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.18</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.13</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.19</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.65</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.60</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.67</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.63</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">indirectly and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.77</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.82</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.05</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.18</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.30</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.05</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.64</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.77</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.51</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4.76</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">32,143</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">31,676</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">30,350</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">30,069</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">28,153</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font>

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">32,430</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">32,492</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">30,715</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">28,923</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">29,705</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">70,053</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">70,138</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">67,662</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">65,172</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">66,259</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<table width="100%"  border="0" cellspacing="4" cellpadding="0">
  <tr>
    <td colspan="2"><HR align="left" width="10%" size=1 noshade></td>
  </tr>
  <tr align="left" valign="top">
    <td width="3%"><sup><font size=1 face="serif">1</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td width="97%"><font size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">2</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">3</font></sup></td>
    <td><font size=1 face="serif">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 period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s 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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">4</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">5</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Annualized.</font></td>
  </tr>
</table>

<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the 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>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">67</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width="41%" align=left>&nbsp; </TD>
    <TD width="1%" align=center>&nbsp; </TD>
    <TD width="7%" align=center> <B></B> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center> </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center>&nbsp; </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center> </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD colspan="2" align=center><b><font size=1 face="serif">For the period</font></b> </TD>
    <TD width="3%" align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD colspan="2" align=center> <B><font size=1 face="serif">Six Months Ended</font></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="8" align=center> <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD> </TD>
    <TD colspan="2" align="center"><b><font size=1 face="serif">February 28, 2006</font></b> </TD>
    <TD align="center"> </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">&nbsp; </TD>
    <TD colspan="2" align="center"><b><font size=1 face="serif">through</font></b> </TD>
    <TD> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">(unaudited)</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2005</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2004</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2003</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">August 31, 2002</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD> </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD width="1%" align="left">
      <HR noshade size=1>
    </TD>
    <TD width="7%">
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.26</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.71</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.77</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.58</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">&nbsp;</font><sup><font size=2 face="serif">2</font></sup>

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.59</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.25</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.03</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.48</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.84</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.85</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.37</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase from investment operations</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.50</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.49</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.93</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.60</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends and distributions to common shareholders:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.47</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.05</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.47</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.99</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.99</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>     </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, end of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.29</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.26</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.71</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.77</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.58</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market price, end of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.82</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.98</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.91</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.64</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.65</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.40</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">22.22</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9.32</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.75</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>     </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses including excise tax and before fees waived</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.62</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.57</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.63</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.62</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.57</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses excluding excise tax and before fees waived</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.58</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.57</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.63</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.62</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.57</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">indirectly and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.33</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.44</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.29</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.45</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.98</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.49</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.60</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.45</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.88</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.46</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.44</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.34</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4.84</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36,440</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">35,375</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">33,214</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">32,652</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">31,611</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font>

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">20</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">20</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">37,044</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36,928</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">33,384</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">31,226</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">32,981</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">20,225</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">20,225</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">20,225</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">20,225</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">20,225</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">70,793</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">70,649</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">66,266</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">63,602</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">65,771</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<table width="100%"  border="0" cellspacing="4" cellpadding="0">
  <tr>
    <td colspan="2"><HR align="left" width="10%" size=1 noshade></td>
  </tr>
  <tr align="left" valign="top">
    <td width="3%"><sup><font size=1 face="serif">1</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td width="97%"><font size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">2</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">3</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">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 period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s 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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">4</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">5</font></sup></td>
    <td><font size=1 face="serif">Annualized.</font></td>
  </tr>
</table>

<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the 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></P>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">68</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=49% align=left>&nbsp; </TD>
    <TD width=1% align=center>&nbsp; </TD>
    <TD width=8% align=center> <B></B> </TD>
    <TD width=4% align=center>&nbsp; </TD>
    <TD width=1% align=center> </TD>
    <TD width=8% align=center> </TD>
    <TD width=4% align=center>&nbsp; </TD>
    <TD width=1% align=center>&nbsp; </TD>
    <TD width=8% align=center> </TD>
    <TD width=4% align=center>&nbsp; </TD>
    <TD colspan="2" align=center><b><font size=1 face="serif">For the period</font></b> </TD>
    <TD width=3% align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD colspan="2" align=center> <B><font size=1 face="serif">Six Months Ended</font></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="5" align=center> <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center><b><font size=1 face="serif">October 31, 2002</font></b><b><sup><font size=1 face="serif">1</font></sup></b> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD> </TD>
    <TD colspan="2" align="center"><b><font size=1 face="serif">February 28, 2006</font></b> </TD>
    <TD align="center"> </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD colspan=4 align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">&nbsp; </TD>
    <TD colspan="2" align="center"><b><font size=1 face="serif">through</font></b> </TD>
    <TD> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">(unaudited)</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2005</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2004</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">August 31, 2003</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD> </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">&nbsp; </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">&nbsp; </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">&nbsp; </TD>
    <TD width="1%" align="center">
      <HR noshade size=1>
    </TD>
    <TD width="8%" align="center">
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
  </TR>

<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.30</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.18</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.45</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=2 face="serif">2</font></sup>

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.50</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.01</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.02</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.69</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.75</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends to preferred shareholders from net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase (decrease) from investment operations</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.41</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.02</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.63</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends to common shareholders from net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.67</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, end of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.35</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.30</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.18</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.45</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market price, end of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.23</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.35</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.08</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(4.87</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.92</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.04</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(7.13</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.91</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.92</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.87</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.91</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses including excise tax and before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.26</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.25</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.27</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.22</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses excluding excise tax and before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.24</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.25</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.27</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.22</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid indirectly and before</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.70</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.77</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.35</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.44</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.96</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.52</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.55</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.26</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.81</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.62</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.80</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">97,381</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">95,400</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">91,808</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">90,967</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">80</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">99,320</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">98,853</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">91,260</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">86,431</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">56,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">56,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">56,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">56,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">69,349</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">69,138</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">65,744</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">63,587</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<table width="100%"  border="0" cellspacing="4" cellpadding="0">
  <tr>
    <td colspan="2"><HR align="left" width="10%" size=1 noshade></td>
  </tr>
  <tr align="left" valign="top">
    <td width="3%"><sup><font size=1 face="serif">1</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td width="97%"><font size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">2</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">3</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">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 period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s 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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">4</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">5</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Annualized.</font></td>
  </tr>
</table>

<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the 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>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">69</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock New York Municipal Bond Trust (BQH)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width="41%" align=left>&nbsp; </TD>
    <TD width="1%" align=center>&nbsp; </TD>
    <TD width="7%" align=center> <B></B> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center> </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center>&nbsp; </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center> </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD colspan="2" align=center><b><font size=1 face="serif">For the period</font></b> </TD>
    <TD width="3%" align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD colspan="2" align=center> <B><font size=1 face="serif">Six Months Ended</font></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="8" align=center> <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD> </TD>
    <TD colspan="2" align="center"><b><font size=1 face="serif">February 28, 2006</font></b> </TD>
    <TD align="center"> </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">&nbsp; </TD>
    <TD colspan="2" align="center"><b><font size=1 face="serif">through</font></b> </TD>
    <TD> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">(unaudited)</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2005</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2004</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2003</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">August 31, 2002</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD> </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD width="1%" align="left">
      <HR noshade size=1>
    </TD>
    <TD width="7%">
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.09</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.09</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.83</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=2 face="serif">2</font></sup>

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.56</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.13</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.13</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.25</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=2 face="serif">3</font></sup>

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.95</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.81</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.71</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.62</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends and distributions to preferred shareholders:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase from investment operations</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.45</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.93</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.87</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.31</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.85</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends and distributions to common shareholders:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.46</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.92</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized gains</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total dividends and distributions</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.46</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.98</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.01</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, end of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.08</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.09</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.09</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.83</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market price, end of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16.68</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.85</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.97</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.35</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.50</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">20.83</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11.83</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.26</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(1.78</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">5</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.12</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.57</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.56</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.60</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.60</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">indirectly and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.17</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.20</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.57</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.57</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.24</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.45</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.97</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.48</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.62</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.50</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.72</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.23</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.09</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4.74</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">6</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">42,914</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">42,217</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">40,396</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">40,072</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">38,183</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">16</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">43,512</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">43,460</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">40,757</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">38,207</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">40,062</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,200</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">69,962</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">69,899</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">67,108</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">64,473</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">66,390</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<table width="100%"  border="0" cellspacing="4" cellpadding="0">
  <tr>
    <td colspan="2"><HR align="left" width="10%" size=1 noshade></td>
  </tr>
  <tr align="left" valign="top">
    <td width="3%"><sup><font size=1 face="serif">1</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td width="97%"><font size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">2</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1
face="serif">3</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Amounted to less than &#36;0.01 per common share outstanding.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">4</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">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 period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s 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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">5</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">6</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Annualized.</font></td>
  </tr>
</table>

<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the 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>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">70</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock New York Municipal Income Trust II (BFY)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width="41%" align=left>&nbsp; </TD>
    <TD width="1%" align=center>&nbsp; </TD>
    <TD width="7%" align=center> <B></B> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center> </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center>&nbsp; </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center> </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD colspan="2" align=center><b><font size=1 face="serif">For the period</font></b> </TD>
    <TD width="3%" align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD colspan="2" align=center> <B><font size=1 face="serif">Six Months Ended</font></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="8" align=center> <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><font size=1 face="serif">July 30, 2002</font></B><b><sup><font size=1 face="serif">1</font></sup></b> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD> </TD>
    <TD colspan="2" align="center"><b><font size=1 face="serif">February 28, 2006</font></b> </TD>
    <TD align="center"> </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">&nbsp; </TD>
    <TD colspan="2" align="center"><b><font size=1 face="serif">through</font></b> </TD>
    <TD> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">(unaudited)</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2005</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2004</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2003</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">August 31, 2002</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD> </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD width="1%" align="left">
      <HR noshade size=1>
    </TD>
    <TD width="7%">
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">PER COMMON SHARE OPERATING</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">PERFORMANCE:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, beginning of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.23</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.36</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.47</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.33</FONT><SUP></SUP>
        </TD>
        <TD align=left><sup><font size=2 face="serif">2</font></sup>

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment operations:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.53</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.04</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.04</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.98</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.02</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Net realized and unrealized gain (loss)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.07</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.79</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Dividends to preferred shareholders from net</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net increase (decrease) from investment operations</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.54</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.96</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.06</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.17</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividends to common shareholders from net</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">investment income</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.89</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capital charges with respect to issuance of:</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Common shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Preferred shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total capital charges</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(0.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net asset value, end of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.41</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.23</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.36</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.47</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market price, end of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.37</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14.02</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.70</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13.12</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15.10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">TOTAL INVESTMENT RETURN</FONT></B><B><SUP><FONT size=2 face="serif">3</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.20</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.91</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">11.82</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(6.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.67</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=2 face="serif">COMMON SHAREHOLDERS:</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.02</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.04</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.43</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses after fees waived and before fees paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.05</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.05</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.08</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.03</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.43</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Expenses before fees waived and paid indirectly</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.29</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.30</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.32</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.27</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.58</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income after fees waived and paid</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">indirectly and before preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.07</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.04</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.77</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5,6</FONT></SUP>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred share dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.50</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.99</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.59</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.68</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5,6</FONT></SUP>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net investment income available to common shareholders</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.57</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.05</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.77</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.27</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.77</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font><sup><font size=2 face="serif">5,6</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">SUPPLEMENTAL DATA:</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Average net assets of common shareholders (000)</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">74,408</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">72,767</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">70,018</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">69,863</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">64,673</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio turnover</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">27</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">40</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">%</font>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets of common shareholders, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">76,069</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">75,193</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">69,903</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">65,953</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">70,276</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred shares value outstanding, end of period (000)</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">44,650</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">44,650</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">44,650</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">44,650</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Asset coverage per preferred share, end of period</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">67,602</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">67,113</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">64,144</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">61,930</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<table width="100%"  border="0" cellspacing="4" cellpadding="0">
  <tr>
    <td colspan="2"><HR align="left" width="10%" size=1 noshade></td>
  </tr>
  <tr align="left" valign="top">
    <td width="3%"><sup><font size=1 face="serif">1</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td width="97%"><font size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">2</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">3</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">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 period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s 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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">4</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">5</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Annualized.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">6</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">These annualized ratios are not indicative of future expense ratios, due to the short operating history of the Trust.</font></td>
  </tr>
</table>

<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the 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>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">71</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">FINANCIAL HIGHLIGHTS</FONT></B></P>
<P>
<B><FONT size=2 face="serif">BlackRock Virginia Municipal Bond Trust (BHV)</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width="41%" align=left>&nbsp; </TD>
    <TD width="1%" align=center>&nbsp; </TD>
    <TD width="7%" align=center> <B></B> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center> </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center>&nbsp; </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD width="1%" align=center> </TD>
    <TD width="7%" align=center> </TD>
    <TD width="4%" align=center>&nbsp; </TD>
    <TD colspan="2" align=center><b><font size=1 face="serif">For the period</font></b> </TD>
    <TD width="3%" align=left>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD colspan="2" align=center> <B><font size=1 face="serif">Six Months Ended</font></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="8" align=center> <B><FONT size=1 face="serif">Year Ended August 31,</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">April 30, 2002</FONT></B><B><SUP><FONT size=1 face="serif">1</FONT></SUP></B> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD> </TD>
    <TD colspan="2" align="center"><b><font size=1 face="serif">February 28, 2006</font></b> </TD>
    <TD align="center"> </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">
      <HR noshade size=1>
    </TD>
    <TD align="center">&nbsp; </TD>
    <TD colspan="2" align="center"><b><font size=1 face="serif">through</font></b> </TD>
    <TD> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">(unaudited)</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2005</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2004</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">2003</FONT></B> </TD>
    <TD align=center>&nbsp; </TD>
    <TD colspan="2" align=center> <B><FONT size=1 face="serif">August 31, 2002</FONT></B> </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD> </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD align="left">
      <HR noshade size=1>
    </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
    <TD width="1%" align="left">
      <HR noshade size=1>
    </TD>
    <TD width="7%">
      <HR noshade size=1>
    </TD>
    <TD>&nbsp; </TD>
  </TR>

  <tr valign="bottom">
    <td align=left> <b><font size=2 face="serif">PER COMMON SHARE OPERATING</font></b>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> &nbsp; &nbsp;<b><font size=2 face="serif">PERFORMANCE:</font></b>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Net asset value, beginning of period</font>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">16.34</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font> </td>
    <td align=right> <font size=2 face="serif">15.47</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">14.46</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font> </td>
    <td align=right> <font size=2 face="serif">14.90</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">14.33</font><sup></sup> </td>
    <td align=left><sup><font size=2 face="serif">2</font></sup> </td>
  </tr>
  <tr>
    <td> </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Investment operations:</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> &nbsp; &nbsp;<font size=2 face="serif">Net investment income</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">0.54</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">1.10</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">1.09</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">1.09</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">0.27</font> </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> &nbsp; &nbsp;<font size=2 face="serif">Net realized and unrealized gain (loss)</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">0.02</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">0.80</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">0.86</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">(0.44</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">0.65</font> </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> &nbsp; &nbsp;<font size=2 face="serif">Dividends and distributions to preferred shareholders:</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> &nbsp; &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Net investment income</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">(0.12</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">(0.16</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">(0.07</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">(0.08</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">(0.03</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> &nbsp; &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Net realized gains</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">&#151;</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">&#151;</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">&#151;</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">(0.02</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">&#151;</font> </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr>
    <td> </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Net increase from investment operations</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">0.44</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">1.74</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">1.88</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">0.55</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">0.89</font> </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr>
    <td> </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Dividends and distributions to common shareholders:</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> &nbsp; &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Net investment income</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">(0.43</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">(0.87</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">(0.87</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">(0.85</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">(0.21</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> &nbsp; &nbsp; &nbsp; &nbsp;<font size=2 face="serif">Net realized gains</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">&#151;</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">&#151;</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">&#151;</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">(0.10</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">&#151;</font> </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr>
    <td> </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Total dividends and distributions</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">(0.43</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">(0.87</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">(0.87</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">(0.95</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">(0.21</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
  </tr>
  <tr>
    <td> </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Capital charges with respect to issuance of:</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> &nbsp; &nbsp;<font size=2 face="serif">Common shares</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">&#151;</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">&#151;</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">&#151;</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">&#151;</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">(0.02</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> &nbsp; &nbsp;<font size=2 face="serif">Preferred shares</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">&#151;</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">&#151;</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">&#151;</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">(0.04</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">(0.09</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
  </tr>
  <tr>
    <td> </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Total capital charges</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">&#151;</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">&#151;</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">&#151;</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">(0.04</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">(0.11</font> </td>
    <td align=left> <font size=2 face="serif">)</font>&nbsp; </td>
  </tr>
  <tr>
    <td> </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=1>    </td>
    <td>
      <hr noshade size=1>
    </td>
    <td>&nbsp;
    </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Net asset value, end of period</font>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">16.35</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font> </td>
    <td align=right> <font size=2 face="serif">16.34</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">15.47</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font> </td>
    <td align=right> <font size=2 face="serif">14.46</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">14.90</font> </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr>
    <td> </td>
    <td align="left">
      <hr noshade size=2>    </td>
    <td>
      <hr noshade size=2>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=2>    </td>
    <td>
      <hr noshade size=2>
    </td>
    <td>&nbsp;
    </td>
    <td align="left">
      <hr noshade size=2>    </td>
    <td>
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    </td>
    <td>&nbsp;
    </td>
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    <td>&nbsp;
    </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Market price, end of period</font>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">17.73</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font> </td>
    <td align=right> <font size=2 face="serif">17.30</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">15.34</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font> </td>
    <td align=right> <font size=2 face="serif">14.40</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">15.20</font> </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr>
    <td> </td>
    <td align="left">
      <hr noshade size=2>    </td>
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    <td>&nbsp;
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    <td>&nbsp;
    </td>
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    <td>&nbsp;
    </td>
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    <td>&nbsp;
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    <td>&nbsp;
    </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <b><font size=2 face="serif">TOTAL INVESTMENT RETURN</font></b><b><sup><font size=2 face="serif">3</font></sup></b>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">5.22</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">19.07</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">12.79</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">0.94</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">2.81</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
  </tr>
  <tr>
    <td> </td>
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    <td>&nbsp;
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    <td>&nbsp;
    </td>
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    <td>&nbsp;
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    <td>&nbsp;
    </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <b><font size=2 face="serif">RATIOS TO AVERAGE NET ASSETS OF</font></b>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> &nbsp; &nbsp;<b><font size=2 face="serif">COMMON SHAREHOLDERS:</font></b><b><sup><font size=2 face="serif">4</font></sup></b>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Expenses after fees waived and paid indirectly</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">1.19</font> </td>
    <td align=left> <font size=2 face="serif">%</font><sup><font size=2 face="serif">5</font></sup>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">1.18</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">1.25</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">1.17</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">1.12</font> </td>
    <td align=left> <font size=2 face="serif">%</font><sup><font size=2 face="serif">5</font></sup>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Expenses after fees waived and before fees paid indirectly</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">1.24</font> </td>
    <td align=left> <font size=2 face="serif">%</font><sup><font size=2 face="serif">5</font></sup>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">1.20</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">1.26</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">1.17</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">1.12</font> </td>
    <td align=left> <font size=2 face="serif">%</font><sup><font size=2 face="serif">5</font></sup>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Expenses before fees waived and paid indirectly</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">1.71</font> </td>
    <td align=left> <font size=2 face="serif">%</font><sup><font size=2 face="serif">5</font></sup>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">1.67</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">1.73</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">1.64</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">1.54</font> </td>
    <td align=left> <font size=2 face="serif">%</font><sup><font size=2 face="serif">5</font></sup>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Net investment income after fees waived and paid</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> &nbsp; &nbsp;<font size=2 face="serif">indirectly and before preferred share dividends</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">6.85</font> </td>
    <td align=left> <font size=2 face="serif">%</font><sup><font size=2 face="serif">5</font></sup>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">6.90</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">7.15</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">7.23</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">5.70</font> </td>
    <td align=left> <font size=2 face="serif">%</font><sup><font size=2 face="serif">5</font></sup>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Preferred share dividends</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">1.48</font> </td>
    <td align=left> <font size=2 face="serif">%</font><sup><font size=2 face="serif">5</font></sup>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">1.00</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">0.47</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">0.53</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">0.54</font> </td>
    <td align=left> <font size=2 face="serif">%</font><sup><font size=2 face="serif">5</font></sup>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Net investment income available to common shareholders</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">5.37</font> </td>
    <td align=left> <font size=2 face="serif">%</font><sup><font size=2 face="serif">5</font></sup>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">5.90</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">6.68</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">6.70</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">5.16</font> </td>
    <td align=left> <font size=2 face="serif">%</font><sup><font size=2 face="serif">5</font></sup>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <b><font size=2 face="serif">SUPPLEMENTAL DATA:</font></b>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=left> </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Average net assets of common shareholders (000)</font>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">24,705</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font> </td>
    <td align=right> <font size=2 face="serif">24,303</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">23,273</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font> </td>
    <td align=right> <font size=2 face="serif">22,896</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">21,321</font> </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Portfolio turnover</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">3</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">5</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">14</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=2 face="serif">18</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td align=right> <font size=2 face="serif">8</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Net assets of common shareholders, end of period (000)</font>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">25,030</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font> </td>
    <td align=right> <font size=2 face="serif">24,966</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">23,527</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font> </td>
    <td align=right> <font size=2 face="serif">21,944</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">22,545</font> </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Preferred shares value outstanding, end of period (000)</font>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">13,525</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font> </td>
    <td align=right> <font size=2 face="serif">13,525</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">13,525</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font> </td>
    <td align=right> <font size=2 face="serif">13,525</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">13,525</font> </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Asset coverage per preferred share, end of period</font>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">71,277</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font> </td>
    <td align=right> <font size=2 face="serif">71,158</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">68,490</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font> </td>
    <td align=right> <font size=2 face="serif">65,562</font> </td>
    <td align=left>&nbsp; </td>
    <td align=left> <font size=2 face="serif">&#36;</font>&nbsp; </td>
    <td align=right> <font size=2 face="serif">66,674</font> </td>
    <td align=left>&nbsp; </td>
  </tr>
</table>
<BR>
<table width="100%"  border="0" cellspacing="4" cellpadding="0">
  <tr>
    <td colspan="2"><HR align="left" width="10%" size=1 noshade></td>
  </tr>
  <tr align="left" valign="top">
    <td width="3%"><sup><font size=1 face="serif">1</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td width="97%"><font size=1 face="serif">Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">2</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Net asset value, beginning of period, reflects a deduction of &#36;0.675 per share sales charge from the initial offering price of &#36;15.00 per share.</font></td>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">3</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">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 period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust&#146;s 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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">4</font></sup></td>
    <td><font size=1 face="serif">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>
  </tr>
  <tr align="left" valign="top">
    <td><sup><font size=1 face="serif">5</font></sup><font size=1 face="serif">&nbsp;</font></td>
    <td><font size=1 face="serif">Annualized.</font></td>
  </tr>
</table>

<P>
<FONT size=1 face="serif">The information in the above Financial Highlights represents the 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>
<P align="center">
<FONT size=2 face="serif">See Notes to Financial Statements.</FONT></P>
<P align="center">
<FONT size=2 face="serif">72</FONT></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>

<P>
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  <tr>
    <td><b><font size=4 face="serif">NOTES TO FINANCIAL STATEMENTS (unaudited)</font></b></td>
  </tr>
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    <td><hr size="1" noshade></td>
  </tr>
</table>
<P><B><FONT face="serif">Note 1. Organization &amp; Accounting Policies</FONT></B></P>
<P>
<FONT size=2 face="serif">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 </FONT><FONT size=2 face="serif">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 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;) (collectively, the &#147;Bond Trusts&#148;), BlackRock Municipal Income Trust II (&#147;Municipal Income II&#148;), BlackRock California Municipal Income Trust II (&#147;California Income II&#148;) and BlackRock New
York Municipal Income Trust II (&#147;New York Income II&#148;) (collectively, the &#147;Income II Trusts&#148;) (all, collectively, the &#147;Trusts&#148;) are organized as Delaware statutory trusts. Insured Municipal, Municipal Bond and Municipal
Income II are registered as diversified closed-end management investment companies under the Investment Company Act of 1940 (the &#147;1940 Act&#148;), 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 1940 Act.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The following is a summary of significant accounting policies followed by the Trusts.</FONT></P>
<P>
<B><FONT size=2 face="serif">Investments Valuation: </FONT></B><FONT size=2 face="serif">Municipal investments (including commitments to purchase such investments 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 investment, pricing services may use
certain information with respect to transactions in such investments, quotations from bond dealers, market transactions in comparable investments and various relationships between investments. A futures contract is valued at the last sale price as
of the close of the commodities exchange on which it trades. Short-term securities may be valued at amortized cost. Investments in open-end investment companies are valued at net asset value. Any investments or other assets for which such current
market quotations are not readily available are valued at fair value (&#147;Fair Value Assets&#148;) as determined in good faith under procedures established by, and under the general supervision and responsibility of, each Trust&#146;s Board. The
investment advisor and/or sub-advisor will submit its recommendations regarding the valuation and/or valuation methodologies for Fair Value Assets to a valuation committee. The valuation committee may accept, modify or reject any recommendations.
The pricing of all Fair Value Assets shall be subsequently reported to the Board. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">When determining the price for a Fair Value Asset, the investment advisor and/or sub-advisor shall seek to determine the price that the Trust might reasonably expect to receive from the current
sale of that asset in an arm&#146;s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant.</FONT></P>
<P>
<B><FONT size=2 face="serif">Investment Transactions and Investment Income: </FONT></B><FONT size=2 face="serif">Investment transactions are recorded on trade date. The cost of investments sold and the related gain or loss is determined by use of
the specific identification method, generally first-in, first-out, for both financial reporting and Federal income tax purposes. 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>
<P>
<B><FONT size=2 face="serif">Financial Futures Contracts: </FONT></B><FONT size=2 face="serif">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>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<P>
<B><FONT size=2 face="serif">Segregation: </FONT></B><FONT size=2 face="serif">In cases in which the 1940 Act, as amended, and the interpretive positions of the Securities and Exchange Commission (the &#147;Commission&#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 Commission, designate on its
books and records cash or other liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated.</FONT></P>
<P>
<B><FONT size=2 face="serif">Federal Income Taxes: </FONT></B><FONT size=2 face="serif">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 and net realized capital gains, if any, to shareholders. For this reason no Federal income tax or excise tax provisions are required.</FONT></P>
<P>
<B><FONT size=2 face="serif">Dividends and Distributions: </FONT></B><FONT size=2 face="serif">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 car-ryforwards may be distributed in accordance with the 1940 Act. Dividends and distributions are recorded on the ex-dividend date. Income distributions and
capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. Dividends and distributions to preferred shareholders are accrued and
determined as described in Note 5.</FONT></P>
<P align="center">
<FONT size=2 face="serif">73</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="serif">Estimates: </FONT></B><FONT size=2 face="serif">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>
<P>
<B><FONT size=2 face="serif">Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: </FONT></B><FONT size=2 face="serif">Under the deferred compensation plan approved by each 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. These amounts are shown on the Statement of Assets and Liabilities as &#147;Investments in Affiliates.&#148; This has the same economic effect for the Trustees as if the Trustees had invested the
deferred amounts in such Trusts.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<P>
<B><FONT face="serif">Note 2. Agreements</FONT></B></P>
<P>
<FONT size=2 face="serif">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 </FONT><FONT size=2 face="serif">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>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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, as well as occupancy and certain clerical and accounting costs of each Trust. Each Trust bears all other costs and expenses, which includes reimbursements to the Advisor for cost of employees that provide pricing, secondary market support,
and compliance services to each Trust. For the six months ended February 28, 2006, the Trusts reimbursed the Advisor the following amounts, which are included in miscellaneous expenses in the Statement of Operations:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="28%" align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width="7%">&nbsp;
        </TD>
        <TD width="10%" align=right>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD width="5%">&nbsp;
        </TD>
        <TD width="28%" align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width="7%">&nbsp;
        </TD>
        <TD width="10%" align=right>
<B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
        </TD>
    <TD width="5%" align=center>&nbsp;</TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;12,109</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;1,539</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,778</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">970</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,245</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">644</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,407</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,736</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,539</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">992</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,530</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,259</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,051</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">738</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<P>
<B><FONT face="serif">Note 3. Portfolio Securities</FONT></B></P>
<P>
<FONT size=2 face="serif">Purchases and sales of investment securities, other than short-term investments inclusive of money market fund shares and U.S. government securities, for the six months ended February 28, 2006, were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="22%" align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="10%" align=center>
<B><FONT size=2 face="serif">Purchases</FONT></B>&nbsp;
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="10%" align=center>
<B><FONT size=2 face="serif">Sales</FONT></B>&nbsp;
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="18%" align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="10%" align=center>
<B><FONT size=2 face="serif">Purchases</FONT></B>&nbsp;
        </TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="10%" align=center>
<B><FONT size=2 face="serif">Sales</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;140,887,391</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;159,331,453</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;3,778,029</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;3,177,431</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">103,560,909</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">115,853,061</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,500,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">171,456,100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">204,143,693</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,051,635</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16,387,024</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,299,609</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14,349,421</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,962,706</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,447,990</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,340,348</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,578,881</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">22,613,594</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,423,016</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">17,160,630</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">18,199,686</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,800,461</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14,530,342</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">993,600</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,020,000</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">There were no purchases or sales of U.S. government securities.</FONT></P>
<P align="center">
<FONT size=2 face="serif">74</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">Note 4. Income Tax Information</FONT></B></P>
<P align="left">
<FONT size=2 face="serif">The tax character of distributions paid during the year ended August 31, 2005, were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD width="27%"></TD>
  <TD width="9%"></TD>
  <TD colspan="7" align="center"><b><font size=2 face="serif">Year ended August 31, 2005</font></b></TD>
  <TD width="5%">&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD width="5%"><HR noshade size=1>
        </TD>
        <TD colspan=3>
<HR noshade size=1>
        </TD>
        <TD width="5%"><HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Tax-exempt</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD width=11% align=center>
<B><FONT size=2 face="serif">Ordinary</FONT></B>&nbsp;
        </TD>
        <TD width=5% align="center">&nbsp;
        </TD>
        <TD width=11% align=center>
<B><FONT size=2 face="serif">Long-term</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Total</FONT></B>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Distributions Paid From:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Income</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Income</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Capital Gains</FONT></B>&nbsp;
        </TD>
        <TD align="center">&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Distributions</FONT></B>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;28,839,682</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;28,839,682</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,214,805</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,214,805</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">26,846,073</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">26,846,073</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,544,502</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,544,502</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,711,408</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,711,408</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,700,653</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,700,653</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,225,061</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,225,061</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,625,312</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,625,312</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,058,800</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,058,800</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,487,958</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,487,958</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,722,546</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,722,546</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,908,936</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,908,936</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,122,610</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,122,610</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,568,927</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,568,927</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">For Federal income tax purposes, the following Trusts had capital loss carryforwards as of their last respective tax year-end (the Bond Trusts have a tax year-end of October 31st and the Income
II Trusts have a tax year-end of June 30th). These amounts may be used to offset future realized capital gains, if any:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR align="center" valign="bottom">
        <TD width=15%>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Capital Loss</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=8%>&nbsp;

        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=15%>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Capital Loss</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=8%>&nbsp;

        </TD>
</TR>
<TR align="center" valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Carryforward Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<B><FONT size=2 face="serif">Expires</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Carryforward Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
<B><FONT size=2 face="serif">Expires</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="1%" align="left">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="1%" align="left">
<HR noshade size=1>
        </TD>
        <TD width="12%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">100,796</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2012</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">215,418</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2012</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,338,302</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2011</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">91,148</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2012</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,200,107</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2012</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,809,683</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2013</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">103</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2012</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16,348,092</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">140,352</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2013</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">140,455</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,282</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2012</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">273,288</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2012</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,496,942</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2013</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,505,224</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">722,685</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2012</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">564,985</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2013</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">789,872</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2012</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,287,670</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
<TR>
        <TD colspan=13>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,454,313</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2011</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">55,382</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2012</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,163,822</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2012</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,357,448</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">2013</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left"><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,975,583</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD align="left">
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Accordingly, no capital gain distributions are expected to be paid to shareholders of a Trust until that Trust has net realized capital gains in excess of its capital loss carryforward
amounts.</FONT></P>
<P align="center">
<FONT size=2 face="serif">75</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">Note 5. Capital</FONT></B></P>
<P>
<FONT size=2 face="serif">There are an unlimited number of &#36;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 </FONT><FONT size=2 face="serif">Market Preferred Shares (&#147;preferred shares&#148;). At February 28, 2006, there were no shares owned by affiliates of the Advisor and the shares outstanding of each Trust were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=21% align=left>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=11% align=center>
<B><FONT size=2 face="serif">Common</FONT></B>&nbsp;
        </TD>
        <TD width=11%>&nbsp;
        </TD>
        <TD width=21% align=left>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=11% align=center>
<B><FONT size=2 face="serif">Common</FONT></B>&nbsp;
        </TD>
    <TD width=11% align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Outstanding</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Outstanding</FONT></B>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD align="center">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">26,203,900</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,312,785</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,167,170</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,019,870</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">22,856,544</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,274,620</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,276,156</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,469,766</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,356,422</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,706,216</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,984,696</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,937,652</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,734,048</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,531,266</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">During the six months ended February 28, 2006, Insured Municipal, Municipal Bond, Municipal Income II, California Insured, California Bond, Florida Insured, Florida Bond, Maryland Bond, New
Jersey Bond, New York Insured, New York Income II and Virginia Bond issued additional shares under their dividend reinvestment plans of 27,142, 26,578, 65,932, 2,293, 5,272, 5,166, 2,653, 2,966, 4,103, 10,476, 5,225 and 3,559, respectively. During
the year ended August 31, 2005, Insured Municipal, Municipal Bond, Municipal Income II, California Insured, Florida Insured, Florida Bond, Maryland Bond, New Jersey Bond, New York Insured, New York Income II and Virginia Bond issued additional
shares under their dividend reinvestment plans of 27,424, 17,537, 9,540, 5,078, 10,058, 649, 1,750, 1,151, 22,751, 2,384 and 6,691, respectively. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">As of February 28, 2006, each Trust had the following series of preferred shares outstanding as listed in the table below. The preferred shares have a liquidation value of &#36;25,000 per share
plus any accumulated unpaid dividends.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=22% align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=7% align=right>
<B><FONT size=2 face="serif">Series</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=7% align=right>
<B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=22% align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=7% align=right>
<B><FONT size=2 face="serif">Series</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=8% align=right>
<B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
        </TD>
    <TD width=4% align=right>&nbsp;</TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD align="right">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD align="right">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,053</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,439</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,053</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,439</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">F7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,053</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,040</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,810</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,191</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,810</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">720</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,055</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">809</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,056</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,240</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,055</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">968</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,056</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,786</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">F7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,860</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">541</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">F7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,199</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
    <TD align=left>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 and average on the preferred shares for
each of the Trusts for the six months ended February 28, 2006, were as follows: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=15% align=left>
<B><FONT size=1 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=5% align=center>
<B><FONT size=1 face="serif">Series</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=4% align=center>
<B><FONT size=1 face="serif">Low</FONT></B>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=4% align=center>
<B><FONT size=1 face="serif">High</FONT></B>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=5% align=center>
<B><FONT size=1 face="serif">Average</FONT></B>
        </TD>
        <TD width=3% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>
 &nbsp; &nbsp;<B><FONT size=1 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=5% align=center>
<B><FONT size=1 face="serif">Series</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=4% align=center>
<B><FONT size=1 face="serif">Low</FONT></B>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=4% align=center>
<B><FONT size=1 face="serif">High</FONT></B>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=5% align=center>
<B><FONT size=1 face="serif">Average</FONT></B>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.48</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.70</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.35</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.90</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.50</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.49</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.38</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.27</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.81</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.39</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">F7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.51</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.70</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.35</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.25</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.89</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.19</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.29</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.25</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.29</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.48</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.38</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.37</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.25</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.38</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.26</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.34</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.60</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.80</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.70</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.25</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.55</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.81</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.04</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.19</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.35</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.78</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.90</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.07</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.55</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.79</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.97</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.85</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.51</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">F7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.18</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.70</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.21</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.48</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.38</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.27</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">F7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.70</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The preferred shares are redeemable at the option of each Trust, in whole or in part, on any dividend payment date at &#36;25,000 per share plus any accumulated unpaid dividends whether or not
declared. The preferred shares are also subject to mandatory redemption at &#36;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>
<P align="center">
<FONT size=2 face="serif">76</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 1940 Act 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>
<P>
<B><FONT face="serif">Note 6. Dividends</FONT></B></P>
<P>
<FONT size=2 face="serif">Subsequent to February 28, 2006, the Board of each Trust declared dividends from undistributed earnings per common share payable April 3, 2006, to shareholders of record on March 5, 2006. The per share common div</FONT><FONT size=2 face="serif">idends declared were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=22% align=left>&nbsp;

        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=14% align=center>
<B><FONT size=2 face="serif">Common Dividend</FONT></B>&nbsp;
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD width=22% align=left>&nbsp;

        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=14% align=center>
<B><FONT size=2 face="serif">Common Dividend</FONT></B>&nbsp;
        </TD>
    <TD width=9% align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Per Share</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Per Share</FONT></B>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.061000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.077808</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.086375</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.071350</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.083750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.078582</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.058000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.058000</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.079656</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.077099</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.065500</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.059250</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.058000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.072428</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The dividends declared on preferred shares for the period March 1, 2006 to March 31, 2006, for each of the Trusts were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=10% align=center>
<B><FONT size=2 face="serif">Dividends</FONT></B>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=10% align=center>
<B><FONT size=2 face="serif">Dividends</FONT></B>&nbsp;
        </TD>
    <TD width=8% align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Series</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Declared</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Series</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Declared</FONT></B>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">169,625</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">95,895</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">206,230</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">98,629</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">F7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">167,579</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">168,051</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">129,451</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">84,454</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">132,836</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">53,050</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">118,409</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">42,788</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">145,688</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">140,157</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">144,508</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">59,968</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">145,853</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">113,482</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">F7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">99,175</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">39,185</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">F7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">68,067</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
    <TD align=left>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
<B><FONT face="serif">Note 7. Concentration Risk</FONT></B></P>
<P>
<FONT size=2 face="serif">The Trusts concentrate their investments in securities issued by state agencies, other governmental entities and U.S. Territories. The Trusts are more susceptible to adverse financial, social, environmental, economic, regulatory and political factors that may affect these states, which could seriously affect the ability of these states and their municipal subdivisions to meet continuing obligations for principle and interest
payments, than if the Trusts were not concentrated in securities issued by state agencies, other governmental entities and U.S. Territories.</FONT></P>
<P>
<FONT size=2 face="serif">Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that market value may fluctuate for other
reasons and there is no assurance that the insurance company will meet its obligations. These securities have been identified in the Portfolios of Investments.</FONT></P>
<P align="center">
<FONT size=2 face="serif">77</FONT></P>

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<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="center"><b><font face="serif">DIVIDEND REINVESTMENT PLANS</font></b></td>
  </tr>
  <tr>
    <td><hr size="1" noshade></td>
  </tr>
</table>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Pursuant to each Trust&#146;s Dividend Reinvestment Plan (the &#147;Plan&#148;), common shareholders are automatically enrolled to have all distributions of dividends and capital gains
reinvested by Computershare Trust Company, N.A. (the &#147;Plan Agent&#148;) in the respective Trust&#146;s shares pursuant to the Plan. Shareholders who do 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, which serves as agent for the shareholders in administering the Plan. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 &#36;2.50 sales fee and a &#36;0.15 per share sold brokerage commission. All correspondence concerning the Plan should
be directed to the Plan Agent, c/o Computershare Investor Services at 250 Royall Street, Canton, MA 02021, or by calling (800) 699-1BFM. </FONT></P>

<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="center"><b><font face="serif">ADDITIONAL INFORMATION</font></b></td>
  </tr>
  <tr>
    <td><hr size="1" noshade></td>
  </tr>
</table>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">BlackRock, Inc. and Merrill Lynch &amp; Co., Inc. (&#147;Merrill Lynch&#146;&#146;) announced on February 15, 2006 that they had reached an agreement to merge Merrill Lynch&#146;s investment
management business, Merrill Lynch Investment Managers, with BlackRock, Inc. to create a new independent company. Merrill Lynch will have a 49.8% economic interest and a 45% voting interest in the combined company and The PNC Financial Services
Group, Inc. (&#147;PNC&#146;&#146;), which currently holds a majority interest in BlackRock, Inc., will have approximately a 34% economic and voting interest. The new company will operate under the BlackRock name and be governed by a board of
directors with a majority of independent members. Each of Merrill Lynch and PNC has agreed that it will vote all of its shares on all matters in accordance with the recommendation of BlackRock&#146;s board in order to assure its independence.
Completion of the transaction is subject to various regulatory approvals, client consents, approval by BlackRock, Inc. shareholders and customary conditions. In the event it is determined that the transaction would constitute an assignment of the
investment management agreement between the Trusts and BlackRock Advisors, Inc. and the sub-investment advisory agreement by and among the Trusts, BlackRock Advisors, Inc. and BlackRock Financial Management, Inc., the agreements would automatically
terminate upon closing of the merger and new agreements would need to be approved by the board of trustees and shareholders of the Trusts. BlackRock, Inc. believes, and is discussing its views with the staff of the Securities and Exchange
Commission, that completion of the transaction should not cause an assignment of these agreements.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Trusts do not make available copies of their respective Statements of Additional Information because the Trusts&#146; shares are not continuously offered, which means that the Statement of
Additional Information of each Trust has not been updated after completion of such Trust&#146;s offering and the information contained in each Trust&#146;s Statement of Additional Information may have become outdated.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">During the period, there were no material changes in the Trusts&#146; investment objectives or policies or to their charters or by-laws that have not been approved by the shareholders or in the
principle risk factors associated with investment in the Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts&#146; portfolios.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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/indiv/products/closedendfunds/funds.html. This reference to BlackRock&#146;s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended, to incorporate
BlackRock&#146;s website into this report.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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&#151;Director of the Advisor and Managing Director of the Advisor and the Sub-Advisor, Henry Gabbay, Anne Ackerley and
Bartholomew Battista&#151;Managing Directors of the Advisor and the Sub-Advisor, James Kong and Vincent Tritto&#151;Managing Directors of the Sub-Advisor, and Brian P. Kindelan&#151;Managing Director of the Advisor.</FONT></P>
<P align="center">
<FONT size=2 face="serif">78</FONT></P>

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<P align="center">&nbsp;</P>
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<P align="center">&nbsp;</P>
<P align="center"><FONT size=2 face="serif">[This Page Intentionally Left Blank]</FONT></P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
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<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
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<P align="center">
<FONT size=6 face="serif">BlackRock Closed-End Funds</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="50%" align=left>
<FONT face="serif">Trustees</FONT>&nbsp;
        </TD>
        <TD width="50%" align=left>
<FONT face="serif">Transfer Agent</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Ralph L. Schlosstein, </FONT><I><FONT size=2 face="serif">Chairman</FONT></I>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Computershare Trust Company, N.A.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Andrew F. Brimmer, </FONT><I><FONT size=2 face="serif">Lead Trustee</FONT></I>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">250 Royall Street</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Richard E. Cavanagh</FONT>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Canton, MA 02021</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Kent Dixon</FONT>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<font size=2 face="serif">(800)</font>\ <FONT size=2 face="serif">699-1BFM</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Frank J. Fabozzi</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT face="serif">Auction Agent</FONT><SUP><FONT face="serif">2</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Kathleen F. Feldstein</FONT>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Bank of New York</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">R. Glenn Hubbard</FONT>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">101 Barclay Street, 7 West</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Robert S. Kapito</FONT>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">New York, NY 10286</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">James Clayburn La Force, Jr.</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD align=left><font face="serif">Auction Agent</font><sup><font face="serif">3</font></sup>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Walter F. Mondale</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD align=left>&nbsp; &nbsp; &nbsp;<font size=2 face="serif">Deutsche Bank Trust Company Americas</font>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Officers</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;&nbsp; &nbsp; <font size=2 face="serif">60 Wall Street, 8th Floor</font>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Robert S. Kapito, </FONT><I><FONT size=2 face="serif">President</FONT></I>&nbsp;
        </TD>
        <TD align=left> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">New York, NY 10286</font>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Henry Gabbay, </FONT><I><FONT size=2 face="serif">Treasurer</FONT></I>&nbsp;
        </TD>
        <TD align=left><font face="serif">Independent Registered Public Accounting Firm</font>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Bartholomew Battista, </FONT><I><FONT size=2 face="serif">Chief Compliance Officer</FONT></I>&nbsp;
        </TD>
        <TD align=left>&nbsp; &nbsp; &nbsp;<font size=2 face="serif">Deloitte &amp; Touche LLP</font>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Anne Ackerley, </FONT><I><FONT size=2 face="serif">Vice President</FONT></I>&nbsp;
        </TD>
        <TD align=left>&nbsp; &nbsp; &nbsp;<font size=2 face="serif">200 Berkeley Street</font>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Kevin M. Klingert, </FONT><I><FONT size=2 face="serif">Vice President</FONT></I>&nbsp;
        </TD>
        <TD align=left>&nbsp; &nbsp; &nbsp;<font size=2 face="serif">Boston, MA 02116</font>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">James Kong, </FONT><I><FONT size=2 face="serif">Assistant Treasurer</FONT></I>&nbsp;
        </TD>
        <TD align=left><font face="serif">Legal Counsel</font>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Vincent B. Tritto, </FONT><I><FONT size=2 face="serif">Secretary</FONT></I>&nbsp;
        </TD>
        <TD align=left>&nbsp; &nbsp; &nbsp;<font size=2 face="serif">Skadden, Arps, Slate, Meagher &amp; Flom LLP</font>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Brian P. Kindelan, </FONT><I><FONT size=2 face="serif">Assistant Secretary</FONT></I>&nbsp;
        </TD>
        <TD align=left> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">4 Times Square</font>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Investment Advisor</FONT>&nbsp;
        </TD>
        <TD align=left> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">New York, NY 10036</font>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">BlackRock Advisors, Inc.</FONT>&nbsp;
        </TD>
        <TD align=left><font face="serif">Legal Counsel &#150; Independent Trustees</font>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">100 Bellevue Parkway</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp; &nbsp; &nbsp;<font size=2 face="serif">Debevoise &amp; Plimpton LLP</font>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Wilmington, DE 19809</FONT>&nbsp;
        </TD>
        <TD align=left> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">919 Third Avenue</font>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; <FONT size=2 face="serif">(800) 227-7BFM</FONT>&nbsp;
        </TD>
        <TD align=left> &nbsp; &nbsp; &nbsp;<font size=2 face="serif">New York, NY 10022</font>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Sub-Advisor</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">BlackRock Financial Management, Inc.</FONT>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">This report is for shareholder information. This is not a prospec-</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">40 East 52nd Street</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">tus intended for use in the purchase or sale of Trust shares.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">New York, NY 10022</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Statements and other information contained in this report are as</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Accounting Agent and Custodian</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">dated and are subject to change.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">State Street Bank and Trust Company</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">2 Avenue De Lafayette</FONT>&nbsp;
        </TD>
        <TD align=left><font size=2 face="serif">BlackRock Closed-End Funds</font>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Boston, MA 02111</FONT>&nbsp;
        </TD>
        <TD align=left><font size=2 face="serif">c/o BlackRock Advisors, Inc.</font>&nbsp;
        </TD>
</TR>
<TR>
        <TD align="left">&nbsp; </TD>
        <TD align="left"><font size=2 face="serif">100 Bellevue Parkway</font>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left><hr align="left" width="15%" size=1 noshade>

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Wilmington, DE 19809</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Retired from the Board of Trustees on February 23, 2006.</FONT>&nbsp;
        </TD>
        <TD align=left><font size=2 face="serif">(800) 227-7BFM</font>

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">For the Insured Trusts and Bond Trusts.</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">For the Income II Trusts.</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">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)699-1BFM.</FONT></P>
<P>
<FONT size=2 face="serif">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) 699-1BFM. These policies and procedures are also available on the website of the Securities and Exchange Commission (the &#147;Commission&#148;) at http://www.sec.gov.</FONT></P>
<P>
<FONT size=2 face="serif">Information on how proxies relating to the Trusts&#146;voting securities were voted (if any) by the Advisor during the most recent 12-month period ended June 30th is available without charge, upon request, by calling (800)
699-1BFM or on the website of the Commission at http://www.sec.gov.</FONT></P>
<P>
<FONT size=2 face="serif">The Trusts file their complete schedule of portfolio holdings for the first and third quarters of their respective fiscal years with the Commission on Form N-Q. Each Trust&#146;s Form N-Q will be available on the
Commission&#146;s website at http://www.sec.gov. Each Trust&#146;s Form N-Q may be reviewed and copied at the Commission&#146;s Public Reference Room in Washington, D.C. Information regarding the operation of the Public Reference Room may be
obtained by calling (800) SEC-0330. Each Trust&#146;s Form N-Q may also be obtained upon request, without charge, by calling (800) 699-1BFM.</FONT></P>
<P align="center">
<FONT size=2 face="serif">80</FONT></P>

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<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" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td width="70%"><font size=1 face="sans-serif">This report is for shareholder information. This is not a prospectus intended<br>
      for use in the purchase or sale of Trust shares. Statements and other<br>
    information contained in this report are as dated and are subject to change.</font></td>
    <td width="30%"><img src="c41499_n-csrs6x83x1.jpg" border=0> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size=1 face="sans-serif">CEF-ANN-1</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<br>
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<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">Item 2. Code of Ethics.</FONT></B><FONT face="serif"> </FONT><br>
<FONT face="serif">Not applicable for semi-annual reports.</FONT></P>
<P>
<B><FONT face="serif">Item 3. Audit Committee Financial Expert.</FONT></B><FONT face="serif"> <br>
Not applicable for semi-annual reports. </FONT></P>
<P>
<B><FONT face="serif">Item 4. Principal Accountant Fees and Services. <br>
</FONT></B><FONT face="serif">Not
applicable for semi-annual reports. </FONT></P>
<P>
<B><FONT face="serif">Item 5. Audit Committee of Listed Registrants.</FONT></B><FONT face="serif"> <br>
Not applicable for semi-annual reports. </FONT></P>
<P>
<B><FONT face="serif">Item 6. Schedule of Investments. <br>
</FONT></B><FONT face="serif">The
Registrant&#146;s Schedule of Investments is included as part of the Report to
Stockholders filed under Item 1 of this Form. </FONT></P>
<P>
<B><FONT face="serif">Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. <br>
</FONT></B><FONT face="serif">Not applicable for semi-annual reports. </FONT></P>
<P>
<B><FONT face="serif">Item 8. Portfolio Managers of Closed-End Management Investment Companies. <br>
</FONT></B><FONT face="serif">Not applicable.</FONT></P>
<P>
<B><FONT face="serif">Item 9. Purchases of Equity Securities by Closed-End Management Company and Affiliated Purchasers. <br>
</FONT></B><FONT face="serif">Not applicable because no such purchases were made during the period covered by this report. </FONT></P>
<P>
<B><FONT face="serif">Item 10. Submission of Matters to a Vote of Security Holders. <br>
</FONT></B><FONT face="serif">Not applicable because no applicable matters were voted on by shareholders during the period covered by this report. </FONT></P>
<P>
<B><FONT face="serif">Item 11. Controls and Procedures.</FONT></B><FONT face="serif"> <br>
</FONT><FONT face="serif">(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, as of that date, that the Registrant&#146;s disclosure controls and procedures were reasonably designed to ensure that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized, and reported within the required time periods
and that information required to be disclosed by the Registrant in this Form N-CSR was accumulated and communicated to the Registrant&#146;s
management, including its principal executive and principal financial officers,
as appropriate to allow timely decisions regarding required disclosure. </FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<FONT face="serif">(b) There were no changes in the Registrant's internal control
over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a -3(d)) that occurred during the second fiscal quarter of the period
covered by this report that has materially affected, or is reasonably likely
to materially affect, the Registrant's internal control over financial reporting. </FONT></P>
<B><FONT face="serif">Item 12. Exhibits.</FONT></B><BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">(a) (1) Not applicable.</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">(a) (2) Separate certifications of Principal Executive and Financial Officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">(b) Certification of Principal Executive and Financial Officers pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif"></FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">


<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>



<center>
  <B><FONT face="serif">SIGNATURES</FONT></B></center>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">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 face="serif">(Registrant)<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;



BlackRock Municipal Income Trust II

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="4%" nowrap><FONT face="serif">By:</FONT></td>
    <td width="96%"><FONT face="serif">/s/ Henry Gabbay </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><hr size="1" noshade>    </td>
  </tr>
</table>
<P><FONT face="serif">Name: Henry Gabbay <br>
Title: Treasurer <br>
Date: May 5, 2006 </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"> 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>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="4%"><FONT face="serif">By:</FONT></td>
    <td><FONT face="serif">/s/ Robert S. Kapito</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><hr size="1" noshade>    </td>
  </tr>
</table>
<P><FONT face="serif">Name: Robert S. Kapito <br>
Title: Principal Executive <br>
Officer Date: May 5, 2006 </FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="4%"><FONT face="serif">By:</FONT></td>
    <td><FONT face="serif">/s/ Henry Gabbay</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><hr size="1" noshade>    </td>
  </tr>
</table>
<P><FONT face="serif">Name: Henry Gabbay <br>
Title: Principal Financial Officer <br>
Date: May 5, 2006 </FONT></P>
<P align="center">


<HR noshade  width="100%" size=4>


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end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>6
<FILENAME>c42525_ex99-cert.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor="#ffffff">


<P>
<B><FONT face="serif">EX-99.CERT</FONT></B></P>
<P>
<B><FONT face="serif">CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER</FONT></B></P>
<B><U><FONT face="serif">CERTIFICATIONS</FONT></U></B><B><FONT face="serif"> </FONT></B><br>
<BR>
<FONT face="serif">I, Robert Kapito, certify that:</FONT><BR>
<P>
<FONT face="serif">1. I have reviewed this report on Form N-CSR of BlackRock Municipal Income Trust II; </FONT></P>
<P>
<FONT face="serif">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 face="serif">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 face="serif">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) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have: </FONT></P>
<P>
<FONT face="serif">(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 face="serif">(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; </FONT></P>
<P>
<FONT face="serif">(c) 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><FONT size=2 face="sans-serif"> </FONT></P>
<P>
<FONT face="serif">(d) Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant&#146;s second fiscal quarter of the period covered by this 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 face="serif">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 face="serif">(a) All significant deficiencies and material weaknesses in the design or operation of internal control 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 face="serif">(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. </FONT></P>
<P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT face="serif">Date: May 5, 2006</FONT>&nbsp;
            </div></TD>
        <TD width=30% align=left><center>
    /s/ <FONT face="serif">Robert S. Kapito</FONT>
    </center></TD>
        <TD width=5%>&nbsp;
        </TD>
  </TR>
<TR>
        <TD>
        </TD>
        <TD width="30%">
      <HR noshade size=1>
    </TD>
        <TD width="5%">
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD width=30% align=center> <FONT face="serif">Robert S. Kapito</FONT></TD>
        <TD width=5%>&nbsp;
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD width=30% align=center> <FONT face="serif">Principal Executive Officer</FONT>&nbsp; </TD>
        <TD width=5%>&nbsp;
        </TD>
  </TR>
</TABLE>
<BR>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT face="serif">EX-99.CERT</FONT></B></P>
<P>
<B><FONT face="serif">CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER</FONT></B></P>
<B><U><FONT face="serif">CERTIFICATIONS</FONT></U></B><B><FONT face="serif"> </FONT></B><br>
<BR>
<FONT face="serif">I, Henry Gabbay, certify that:</FONT><BR>
<P>
<FONT face="serif">1. I have reviewed this report on Form N-CSR of BlackRock Municipal Income Trust II; </FONT></P>
<P>
<FONT face="serif">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 face="serif">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 face="serif">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) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have: </FONT></P>
<P>
<FONT face="serif">(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 face="serif">(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; </FONT></P>
<P>
<FONT face="serif">(c) 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 face="serif">(d) Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant&#146;s second fiscal quarter of the period covered by this 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 face="serif">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 face="serif">(a) All significant deficiencies and material weaknesses in the design or operation of internal control 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 face="serif">(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting. </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT face="serif">Date: May 5, 2006</FONT>&nbsp;
            </div></TD>
        <TD width=30% align=left> <center>
          <FONT face="serif">/s/ Henry Gabbay</FONT>&nbsp;
    </center></TD>
        <TD width=5%>&nbsp;
        </TD>
  </TR>
<TR>
        <TD>
        </TD>
        <TD width="30%">
      <HR noshade size=1>
    </TD>
        <TD width="5%">
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD width=30% align=center> <FONT face="serif">Henry Gabbay</FONT>&nbsp; </TD>
        <TD width=5%>&nbsp;
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD width=30% align=center> <FONT face="serif">Principal Financial Officer</FONT>&nbsp; </TD>
        <TD width=5%>&nbsp;
        </TD>
  </TR>
</TABLE>
<BR>
<P>&nbsp;</P>

<HR noshade  width="100%" size=4>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.906CERT
<SEQUENCE>7
<FILENAME>c42525_ex99-906cert.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor="#ffffff">


<P>
<B><U><FONT face="serif">SECTION 906 CERTIFICATION</FONT></U></B></P>
<P>
<FONT face="serif">Pursuant to 18 U.S.C. &sect; 1350, the undersigned officers of BlackRock Municipal Income Trust II (the "Company"), hereby certify, to the best of their knowledge, that the Company's Report on Form N-CSR for the period ended
February 28, 2006 (the "Report") 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>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="30%"><FONT face="serif">Dated: May 5, 2006</FONT></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="serif">/s/ Robert S. Kapito </FONT></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade>    </td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="serif">Name: Robert S. Kapito </FONT><BR>
      <FONT face="serif">Title: Principal Executive Officer</FONT></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="serif">/s/ Henry Gabbay </FONT></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><hr size="1" noshade>    </td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="serif">Name: Henry Gabbay </FONT><BR>
      <FONT face="serif">Title: Principal Financial Officer</FONT></td>
    <td>&nbsp;</td>
  </tr>
</table>
<BR>
<BR>

<HR noshade  width="100%" size=4>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
