N-CSRS 1 d884104dncsrs.htm BLACKROCK MUNICIPAL INCOME TRUST II

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-21126

Name of Fund: |  | BlackRock Municipal Income Trust II (BLE)
Fund Address: |  | 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Municipal Income Trust II, 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 08/31/2015

Date of reporting period: 02/28/2015

Item 1 – Report to Stockholders

FEBRUARY 28, 2015

SEMI-ANNUAL REPORT (UNAUDITED) |  |  |  |

BlackRock Municipal Bond Investment Trust (BIE)

BlackRock Municipal Bond Trust (BBK)

BlackRock Municipal Income Investment Quality Trust (BAF)

BlackRock Municipal Income Quality Trust (BYM)

BlackRock Municipal Income Trust II (BLE)

BlackRock MuniHoldings Investment Quality Fund (MFL)

BlackRock MuniVest Fund, Inc. (MVF)

Not FDIC Insured • May Lose Value • No Bank Guarantee

Table of Contents |  |

|  | Page |
The Markets in Review |  |  | 3 |
Semi-Annual Report: |  |  |  |
Municipal Market Overview |  |  | 4 |
The Benefits and Risks of Leveraging |  |  | 5 |
Derivative Financial Instruments |  |  | 5 |
Trust Summaries |  |  | 6 |
Financial Statements: |  |  |  |
Schedules of Investments |  |  | 20 |
Statements of Assets and Liabilities |  |  | 57 |
Statements of Operations |  |  | 59 |
Statements of Changes in Net Assets |  |  | 61 |
Statements of Cash Flows |  |  | 63 |
Financial Highlights |  |  | 65 |
Notes to Financial Statements |  |  | 72 |
Officers and Trustees |  |  | 82 |
Additional Information |  |  | 83 |

2 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

The Markets in Review

Dear Shareholder,

Market volatility, while remaining below the long-term average level, increased over the course of 2014 and into 2015, driven largely by higher valuations in risk assets (such as equities and high yield bonds), geopolitical risks, uneven global economic growth and uncertainty around policy moves from the world’s largest central banks. As the U.S. Federal Reserve (the “Fed”) gradually reduced its bond buying program (which ultimately ended in October 2014), U.S. interest rates surprisingly trended lower during the period.

The first half of 2014 was generally a strong period for most asset classes; however, volatility ticked up in the summer as geopolitical tensions intensified in Ukraine and the Middle East and investors feared that better U.S. economic indicators may compel the Fed to increase short-term interest rates sooner than previously anticipated. Global credit markets tightened as the U.S. dollar strengthened versus other currencies, ultimately putting a strain on investor flows, and financial markets broadly weakened in the third quarter.

Several themes dominated the markets in the fourth quarter that resulted in the strong performance of U.S. markets versus other areas of the world. Economic growth strengthened considerably in the United States while the broader global economy showed signs of slowing. The European Central Bank and the Bank of Japan took aggressive measures to stimulate growth while the Fed moved toward tighter policy, causing further strengthening in the U.S. dollar. Fixed income investors piled into U.S. Treasuries where yields remained persistently low, but were comparatively higher than yields on international sovereign debt, while equity investors favored the relative stability of U.S.-based companies amid rising global risks.

Oil prices, which had been gradually declining since mid-summer, plummeted in the fourth quarter due to a global supply-and-demand imbalance. Energy-related assets sold off sharply and emerging markets struggled as many of those economies rely heavily on oil exports. Conversely, the consumer sectors benefited from lower oil prices as savings at the gas pumps freed up discretionary income for other goods and services.

These trends shifted in early 2015. U.S. equities underperformed international markets given high valuations and the anticipation of a rate hike from the Fed. Oil prices showed signs of stabilizing as suppliers became more disciplined in their exploration and production efforts. Markets in Europe and Japan rebounded, driven largely by central bank policy accommodation and improving economic data.

At BlackRock, we believe investors need to think globally, extend their scope across a broad array of asset classes and be prepared to move freely as market conditions change over time. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of February 28, 2015 |
|  | 6-month |  |  | 12-month |
U.S. large cap equities (S&P 500® Index) |  |  | 6.12 | % |  |  | 15.51 | %
U.S. small cap equities (Russell 2000® Index) |  |  | 5.70 |  |  |  | 5.63 |
International equities (MSCI Europe, Australasia, Far East Index) |  |  | (1.26 | ) |  |  | (0.03 | )
Emerging market equities (MSCI Emerging Markets Index) |  |  | (8.30 | ) |  |  | 5.01 |
3-month Treasury bills (BofA Merrill Lynch 3-Month U.S. Treasury Bill Index) |  |  | 0.01 |  |  |  | 0.03 |
U.S. Treasury securities (BofA Merrill Lynch 10-Year U.S. Treasury Index) |  |  | 4.14 |  |  |  | 8.66 |
U.S. investment-grade bonds (Barclays U.S. Aggregate Bond Index) |  |  | 2.25 |  |  |  | 5.05 |
Tax-exempt municipal bonds (S&P Municipal Bond Index) |  |  | 2.17 |  |  |  | 6.47 |
U.S. high yield bonds (Barclays U.S. Corporate High Yield 2% Issuer Capped Index) |  |  | (0.08 | ) |  |  | 2.81 |
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. |

|  | THIS PAGE NOT PART OF YOUR FUND REPORT |  |  |  | 3

Municipal Market Overview |  |

For the Reporting Period Ended February 28, 2015 |  |

Municipal Market Conditions

Municipal bonds generated strong performance throughout most of the period, thanks to a favorable supply-and-demand environment and declining interest rates. (Bond prices rise as rates fall.) Interest rates moved lower in 2014 even as the U.S. Federal Reserve (the “Fed”) scaled back its open-market bond purchases. This surprising development, coupled with reassurance from the Fed that short-term rates would remain low for a considerable amount of time, resulted in strong demand for fixed income investments in 2014, with municipal bonds being one of the stronger performing sectors for the year. This trend continued into the beginning of 2015 until rate volatility ultimately increased in February as a result of uneven U.S. economic data and widening central bank divergence, i.e., rate cuts outside the United States while the Fed poised for normalizing U.S. rates. During the 12 months ended February 28, 2015, municipal bonds garnered net inflows of approximately $34 billion (based on data from the Investment Company Institute).

For the same 12-month period, total new issuance remained relatively strong from a historical perspective at $356 billion (slightly higher than the $318 billion issued in the prior 12-month period). A noteworthy portion of new supply during this period was attributable to refinancing activity (roughly 50%) as issuers took advantage of low interest rates and a flatter yield curve to reduce their borrowing costs.

S&P Municipal Bond Index
Total Returns as of February 28, 2015
6 months: 2.17%
12 months: 6.47%

A Closer Look at Yields

From February 28, 2014 to February 28, 2015, yields on AAA-rated 30-year municipal bonds decreased by 85 basis points (“bps”) from 3.72% to 2.87%, while 10-year rates decreased 38 bps from 2.40% to 2.02% and 5-year rates increased 19 bps from 1.00% to 1.19% (as measured by Thomson Municipal Market Data). Overall, the municipal yield curve remained relatively steep over the 12-month period even as the spread between 2- and 30-year maturities flattened by 103 bps and the spread between 2- and 10-year maturities flattened by 56 bps.

During the same time period, U.S. Treasury rates fell by 100 bps on 30-year bonds, 66 bps on 10-year bonds and 1 bp in 5-year issues. Accordingly, tax-exempt municipal bonds underperformed U.S. Treasuries across the yield curve, most notably in the intermediate portion of the curve as a result of increased supply. Municipals modestly outperformed U.S. Treasuries in the very short end of the curve as expectations around future Fed policy changes pressured short-term U.S. Treasury prices. In absolute terms, positive performance on the long end of the curve was driven largely by a supply/demand imbalance within the municipal market as investors sought income and incremental yield in an environment where opportunities had become scarce. More broadly, municipal bonds benefited from the greater appeal of tax-exempt investing in light of the higher tax rates implemented in 2014. The asset class is known for its lower relative volatility and preservation of principal with an emphasis on income as tax rates rise. The municipal market continues to be an attractive avenue for investors seeking yield in the low-rate environment. However, opportunities have not been as broad-based as in 2011 and 2012, warranting a more flexible approach to security selection and yield curve positioning going forward.

Financial Conditions of Municipal Issuers Continue to Improve

Following an extended period of nation-wide austerity and de-leveraging as states sought to balance their budgets, solid revenue growth exceeding pre-recession levels coupled with the elimination of more than 625,000 jobs in recent years have put state and local governments in a better financial position. Many local municipalities, however, continue to face increased health care and pension costs passed down from the state level. BlackRock maintains the view that municipal bond defaults will remain minimal and in the periphery while the overall market is fundamentally sound. We continue to advocate careful credit research and believe that a thoughtful approach to structure and security selection remain imperative amid uncertainty in a modestly improving economic environment.

Investing involves risk including loss of principal. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to Alternative Minimum Tax (AMT). Capital gains distributions, if any, are taxable.

Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

4 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

The Benefits and Risks of Leveraging |  |

The Trusts may utilize leverage to seek to enhance the yield and net asset value (“NAV”) of their common shares (“Common Shares”). However, these objectives cannot be achieved in all interest rate environments.

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by a Trust on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of the Trust (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Trust’s shareholders benefit from the incremental net income. The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share NAV.

To illustrate these concepts, assume a Trust’s Common Shares capitalization is $100 million and it utilizes leverage for an additional $30 million, creating a total value of $130 million available for investment in longer-term income securities. If prevailing short-term interest rates are 3% and longer-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Trust’s financing costs on the $30 million of proceeds obtained from leverage are based on the lower short-term interest rates. At the same time, the securities purchased by the Trust with the proceeds from leverage earn income based on longer-term interest rates. In this case, the Trust’s financing cost of leverage is significantly lower than the income earned on the Trust’s longer-term investments acquired from leverage proceeds, and therefore the holders of Common Shares (“Common Shareholders”) are the beneficiaries of the incremental net income.

However, in order to benefit Common Shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed the Trust’s return on assets purchased with leverage proceeds, income to shareholders is lower than if the Trust had not used leverage. Furthermore, the value of the Trust’s portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the value of the Trust’s obligations under its leverage arrangement generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trust’s NAV positively or negatively. Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that a Trust’s intended leveraging strategy will be successful.

Leverage also generally causes greater changes in the Trusts’ NAVs, market prices and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the net asset value and market price of a Trust’s Common Shares than if the Trust were not leveraged. In addition, the Trust may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause the Trust to incur losses. The use of leverage may limit the Trust’s ability to invest in certain types of securities or use certain types of hedging strategies. The Trust incurs expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares.

To obtain leverage, each Trust has issued Variable Rate Demand Preferred Shares (“VRDP Shares”) or Variable Rate Muni Term Preferred Shares (“VMTP Shares”) (collectively, “Preferred Shares”) and/or leveraged its assets through the use of tender option bond trusts (“TOB Trusts”) as described in the Notes to Financial Statements.

Under the Investment Company Act of 1940 (the “1940 Act”), each Trust is permitted to issue debt up to 33 1/3% of its total managed assets or equity securities (e.g., Preferred Shares) up to 50% of its total managed assets. A Trust may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, a Trust may also be subject to certain asset coverage, leverage or portfolio composition requirements imposed by the Preferred Shares’ governing instruments or by agencies rating the Preferred Shares, which may be more stringent than those imposed by the 1940 Act.

If a Trust segregates or designates on its books and records cash or liquid assets having a value not less than the value of the Trust’s obligations under the TOB Trust (including accrued interest), a TOB Trust is not considered a senior security and is not subject to the foregoing limitations and requirements under the 1940 Act.

Derivative Financial Instruments |  |

The Trusts may invest in various derivative financial instruments. Derivative financial instruments are used to obtain exposure to a security, index and/or market without owning or taking physical custody of securities or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage. Derivative financial instruments also involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the derivative financial instrument. The Trusts’ ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Trust can realize on an investment and/or may result in lower distributions paid to shareholders. The Trusts’ investments in these instruments are discussed in detail in the Notes to Financial Statements.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 5

Trust Summary as of February 28, 2015 |  | BlackRock Municipal Bond Investment Trust

Trust Overview

BlackRock Municipal Bond Investment Trust’s (BIE) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax and Florida intangible personal property tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Trust invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives. Effective January 1, 2007, the Florida intangible personal property tax was repealed.

No assurance can be given that the Trust’s investment objective will be achieved.

Performance

Ÿ |  | For the six months ended February 28, 2015, the Trust returned 7.24% based on market price and 4.27% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 6.44% based on market price and 4.58% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

Ÿ |  | Municipal bond yields declined during the six-month period, while the yield curve flattened (i.e., rates on longer-dated bonds fell more than rates on shorter-dated securities). In this environment, the Trust’s duration (interest rate sensitivity) had a positive impact on performance. (Bond prices rise when rates fall.) The Trust’s longer-dated holdings in the transportation, health care, utilities and tax backed sectors were particularly strong contributors to performance. At a time of modest price gains for the municipal bond market, the income generated from coupon payments on the Trust’s portfolio of tax-exempt bonds made a meaningful contribution to absolute performance. In addition, the use of leverage allowed the Trust to enhance its level of income.

Ÿ |  | In the positive market environment, there were no material detractors from the Trust’s performance during the period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Trust Information

Symbol on New York Stock Exchange (“NYSE”) |  | BIE
Initial Offering Date |  | April 30, 2002
Yield on Closing Market Price as of February 28, 2015 ($15.17)1 |  | 6.01%
Tax Equivalent Yield 2 |  | 10.62%
Current Monthly Distribution per Common Share 3 |  | $0.076
Current Annualized Distribution per Common Share 3 |  | $0.912
Economic Leverage as of February 28, 2015 4 |  | 38%

| 1 |  | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

| 2 |  | Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

| 3 |  | The distribution rate is not constant and is subject to change.

| 4 |  | Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.

6 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

|  | BlackRock Municipal Bond Investment Trust

Market Price and Net Asset Value Per Share Summary |  |

|  | 2/28/15 |  |  | 8/31/14 |  |  | Change |  |  | High |  |  | Low |
Market Price |  | $ | 15.17 |  |  | $ | 14.58 |  |  |  | 4.05 | % |  | $ | 15.69 |  |  | $ | 14.29 |
Net Asset Value |  | $ | 16.46 |  |  | $ | 16.27 |  |  |  | 1.17 | % |  | $ | 16.76 |  |  | $ | 16.12 |

Market Price and Net Asset Value History For the Past Five Years

Overview of the Trust’s Total Investments*

Sector Allocation |  |  |  |  |  |
|  | 2/28/15 |  |  | 8/31/14 |
Transportation |  |  | 26 | % |  |  | 25 | %
County/City/Special District/School District |  |  | 24 |  |  |  | 23 |
Utilities |  |  | 15 |  |  |  | 16 |
Health |  |  | 15 |  |  |  | 14 |
State |  |  | 8 |  |  |  | 9 |
Education |  |  | 8 |  |  |  | 7 |
Tobacco |  |  | 2 |  |  |  | 1 |
Corporate |  |  | 1 |  |  |  | 1 |
Housing |  |  | 1 |  |  |  | 4 |

Credit Quality Allocation1 |  |  |  |  |  |
|  | 2/28/15 |  |  | 8/31/14 |
AAA/Aaa |  |  | 7 | % |  |  | 10 | %
AA/Aa |  |  | 60 |  |  |  | 59 |
A |  |  | 27 |  |  |  | 25 |
BBB/Baa |  |  | 5 |  |  |  | 5 |
B |  |  | 1 |  |  |  | 1 |

| 1 |  | For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either Standard & Poor’s (“S&P”) or Moody’s Investors Service (“Moody’s”) if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

Call/Maturity Schedule2 |  |  |
Calendar Year Ended December 31, |  |  |  |
2015 |  |  | — |
2016 |  |  | 2 | %
2017 |  |  | 1 |
2018 |  |  | 17 |
2019 |  |  | 29 |

| 2 |  | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

| * |  | Excludes short-term securities.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 7

Trust Summary as of February 28, 2015 |  | BlackRock Municipal Bond Trust

Trust Overview

BlackRock Municipal Bond Trust’s (BBK) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from regular federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Trust invests, under normal market conditions, at least 80% of its assets in municipal bonds that are investment grade quality. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

Performance

Ÿ |  | For the six months ended February 28, 2015, the Trust returned 9.28% based on market price and 5.68% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 6.44% based on market price and 4.58% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

Ÿ |  | Tax-exempt rates declined during the period, supporting generally positive performance for municipal bonds. (Bond prices rise when rates fall.) Municipal bonds with longer durations (and greater sensitivity to interest rate movements) tended to provide the strongest returns. In this environment, the Trust’s longer duration and positions in longer-dated bonds generally outperformed. The Trust’s positions in the health care, transportation and tax-backed (local school districts) sectors were positive contributors to performance. Exposure to lower-coupon and zero-coupon bonds, which generated strong price performance, also drove returns. The Trust’s exposure to the middle investment-grade quality categories (bonds rated A and AA) aided performance, as these credit quality tiers outperformed. The Trust’s exposure to higher-yielding bonds was an additional positive contributor. At a time of modest price gains for the municipal bond market, the income generated from coupon payments on the Trust’s portfolio of tax-exempt bonds made a meaningful contribution to absolute performance. In addition, the use of leverage allowed the Trust to enhance its level of income.

Ÿ |  | In the positive market environment, there were no material detractors from the Trust’s performance during the period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Trust Information

Symbol on NYSE |  | BBK
Initial Offering Date |  | April 30, 2002
Yield on Closing Market Price as of February 28, 2015 ($16.52)1 |  | 5.96%
Tax Equivalent Yield 2 |  | 10.53%
Current Monthly Distribution per Common Share 3 |  | $0.082
Current Annualized Distribution per Common Share 3 |  | $0.984
Economic Leverage as of February 28, 2015 4 |  | 36%

| 1 |  | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

| 2 |  | Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

| 3 |  | The distribution rate is not constant and is subject to change.

| 4 |  | Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.

8 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

|  | BlackRock Municipal Bond Trust

Market Price and Net Asset Value Per Share Summary |
|  | 2/28/15 |  | 8/31/14 |  |  | Change |  |  | High |  |  | Low |
Market Price |  | $16.52 |  |  | $15.59 |  |  |  | 5.97% |  |  |  | $16.93 |  |  |  | $15.18 |
Net Asset Value |  | $16.95 |  |  | $16.54 |  |  |  | 2.48% |  |  |  | $17.35 |  |  |  | $16.36 |

Market Price and Net Asset Value History For the Past Five Years

Overview of the Trust’s Total Investments*

Sector Allocation |  |  |  |  |  |
|  | 2/28/15 |  |  | 8/31/14 |
County/City/Special District/School District |  |  | 22 | % |  |  | 20 | %
Health |  |  | 20 |  |  |  | 21 |
Transportation |  |  | 18 |  |  |  | 17 |
Education |  |  | 12 |  |  |  | 12 |
Utilities |  |  | 11 |  |  |  | 11 |
Corporate |  |  | 8 |  |  |  | 7 |
State |  |  | 7 |  |  |  | 6 |
Housing |  |  | 1 |  |  |  | 5 |
Tobacco |  |  | 1 |  |  |  | 1 |

Credit Quality Allocation1 |  |  |  |  |  |
|  | 2/28/15 |  |  | 8/31/14 |
AAA/Aaa |  |  | 4 | % |  |  | 11 | %
AA/Aa |  |  | 43 |  |  |  | 43 |
A |  |  | 32 |  |  |  | 22 |
BBB/Baa |  |  | 9 |  |  |  | 14 |
BB/Ba |  |  | 5 |  |  |  | 5 |
B |  |  | 1 |  |  |  | — |
N/R 2 |  |  | 6 |  |  |  | 5 |

| 1 |  | For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

| 2 |  | The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of February 28, 2015 and August 31, 2014, the market value of unrated securities deemed by the investment advisor to be investment grade each representing 2%, respectively, of the Trust’s total investments.

Call/Maturity Schedule3 |  |  |
Calendar Year Ended December 31, |  |  |  |
2015 |  |  | 6 | %
2016 |  |  | 1 |
2017 |  |  | 3 |
2018 |  |  | 10 |
2019 |  |  | 9 |

| 3 |  | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

| * |  | Excludes short-term securities.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 9

Trust Summary as of February 28, 2015 |  | BlackRock Municipal Income Investment Quality Trust

Trust Overview

BlackRock Municipal Income Investment Quality Trust’s (BAF) (the “Trust”) investment objective is to provide current income exempt from federal income tax, including the alternative minimum tax and Florida intangible property tax. The Trust seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its assets in municipal bonds exempt from federal income taxes, including the alternative minimum tax. The Trust also invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives. Effective January 1, 2007, the Florida intangible property tax was repealed.

No assurance can be given that the Trust’s investment objective will be achieved.

Performance

Ÿ |  | For the six months ended February 28, 2015, the Trust returned 6.71% based on market price and 4.86% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 6.44% based on market price and 4.58% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

Ÿ |  | Municipal bond yields declined during the six-month period, while the yield curve flattened (i.e., rates on longer-dated bonds fell more than rates on shorter-dated securities). In this environment, the Trust’s duration (interest rate sensitivity) had a positive impact on performance. (Bond prices rise when rates fall.) The Trust’s longer-dated holdings in the transportation, utilities and tax backed sectors were particularly strong contributors to performance. At a time of modest price gains for the municipal bond market, the income generated from coupon payments on the Trust’s portfolio of tax-exempt bonds made a meaningful contribution to absolute performance. In addition, the use of leverage allowed the Trust to enhance its level of income.

Ÿ |  | In the positive market environment, there were no material detractors from the Trust’s performance during the period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Trust Information

Symbol on NYSE |  | BAF
Initial Offering Date |  | October 31, 2002
Yield on Closing Market Price as of February 28, 2015 ($14.71)1 |  | 5.59%
Tax Equivalent Yield 2 |  | 9.88%
Current Monthly Distribution per Common Share 3 |  | $0.0685
Current Annualized Distribution per Common Share 3 |  | $0.8220
Economic Leverage as of February 28, 2015 4 |  | 34%

| 1 |  | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

| 2 |  | Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

| 3 |  | The distribution rate is not constant and is subject to change.

| 4 |  | Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.

10 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

|  | BlackRock Municipal Income Investment Quality Trust

Market Price and Net Asset Value Per Share Summary |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2/28/15 |  | 8/31/14 |  |  | Change |  |  | High |  |  | Low |
Market Price |  | $14.71 |  |  | $14.18 |  |  |  | 3.74% |  |  |  | $15.29 |  |  |  | $13.86 |
Net Asset Value |  | $16.28 |  |  | $15.97 |  |  |  | 1.94% |  |  |  | $16.57 |  |  |  | $15.80 |

Market Price and Net Asset Value History For the Past Five Years

Overview of the Trust’s Total Investments*

Sector Allocation |  |  |  |  |  |
|  | 2/28/15 |  |  | 8/31/14 |
County/City/Special District/School District |  |  | 31 | % |  |  | 32 | %
Transportation |  |  | 27 |  |  |  | 28 |
Utilities |  |  | 16 |  |  |  | 19 |
Health |  |  | 12 |  |  |  | 12 |
State |  |  | 10 |  |  |  | 5 |
Education |  |  | 2 |  |  |  | 2 |
Tobacco |  |  | 1 |  |  |  | 1 |
Housing |  |  | 1 |  |  |  | 1 |

Credit Quality Allocation1 |  |  |  |  |
|  | 2/28/15 |  | 8/31/14 |
AAA/Aaa |  | 3% |  |  | 3 | %
AA/Aa |  | 73 |  |  | 75 |
A |  | 21 |  |  | 20 |
BBB/Baa |  | 3 |  |  | 2 |

| 1 |  | For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

Call/Maturity Schedule2 |  |  |
Calendar Year Ended December 31, |  |  |  |
2015 |  |  | — |
2016 |  |  | — |
2017 |  |  | 1 | %
2018 |  |  | — |
2019 |  |  | 1 |

| 2 |  | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

| * |  | Excludes short-term securities.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 11

Trust Summary as of February 28, 2015 |  | BlackRock Municipal Income Quality Trust

Trust Overview

BlackRock Municipal Income Quality Trust’s (BYM) (the “Trust”) investment objective is to provide current income exempt from federal income taxes, including the alternative minimum tax. The Trust seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its assets in municipal bonds exempt from federal income taxes, including the alternative minimum tax. The Trust also invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

Performance

Ÿ |  | For the six months ended February 28, 2015, the Trust returned 7.60% based on market price and 4.62% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 6.44% based on market price and 4.58% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

Ÿ |  | At a time of modest price gains for the municipal bond market, the income generated from coupon payments on the Trust’s portfolio of tax-exempt bonds made a meaningful contribution to absolute performance. Exposure to longer-dated bonds had a positive impact as the municipal yield curve flattened during the period (i.e., longer-term rates fell more than shorter-term rates). The Trust’s duration exposure (sensitivity to interest rate movements) also contributed to performance given that municipal interest rates fell slightly during the period. (Bond prices rise as rates fall.) The Trust also benefited from its credit exposure as yield spreads generally tightened, especially in the tax-backed local and transportation sectors. In addition, the use of leverage allowed the Trust to enhance its level of income.

Ÿ |  | In the positive market environment, there were no material detractors from the Trust’s performance during the period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Trust Information

Symbol on NYSE |  | BYM
Initial Offering Date |  | October 31, 2002
Yield on Closing Market Price as of February 28, 2015 ($14.58)1 |  | 5.88%
Tax Equivalent Yield 2 |  | 10.39%
Current Monthly Distribution per Common Share 3 |  | $0.0715
Current Annualized Distribution per Common Share 3 |  | $0.8580
Economic Leverage as of February 28, 2015 4 |  | 37%

| 1 |  | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

| 2 |  | Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

| 3 |  | The distribution rate is not constant and is subject to change.

| 4 |  | Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.

12 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

|  | BlackRock Municipal Income Quality Trust

Market Price and Net Asset Value Per Share Summary |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2/28/15 |  | 8/31/14 |  |  | Change |  |  | High |  |  | Low |
Market Price |  | $14.58 |  | $ | 13.96 |  |  |  | 4.44 | % |  | $ | 15.17 |  |  | $ | 13.69 |
Net Asset Value |  | $15.80 |  | $ | 15.56 |  |  |  | 1.54 | % |  | $ | 16.14 |  |  | $ | 15.39 |

Market Price and Net Asset Value History For the Past Five Years

Overview of the Trust’s Total Investments*

Sector Allocation |  |  |  |  |  |
|  | 2/28/15 |  |  | 8/31/14 |
County/City/Special District/School District |  |  | 29 | % |  |  | 32 | %
Transportation |  |  | 25 |  |  |  | 25 |
Utilities |  |  | 13 |  |  |  | 13 |
State |  |  | 11 |  |  |  | 12 |
Health |  |  | 9 |  |  |  | 8 |
Education |  |  | 9 |  |  |  | 6 |
Corporate |  |  | 2 |  |  |  | 2 |
Tobacco |  |  | 2 |  |  |  | 2 |

Credit Quality Allocation1 |  |  |  |  |  |
|  | 2/28/15 |  |  | 8/31/14 |
AAA/Aaa |  |  | 19 | % |  |  | 17 | %
AA/Aa |  |  | 57 |  |  |  | 52 |
A |  |  | 21 |  |  |  | 26 |
BBB/Baa |  |  | 3 |  |  |  | 5 |

| 1 |  | For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

Call/Maturity Schedule2 |  |  |
Calendar Year Ended December 31, |  |  |  |
2015 |  |  | 1 | %
2016 |  |  | 4 |
2017 |  |  | 8 |
2018 |  |  | 16 |
2019 |  |  | 8 |

| 2 |  | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

| * |  | Excludes short-term securities.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 13

Trust Summary as of February 28, 2015 |  | BlackRock Municipal Income Trust II

Trust Overview

BlackRock Municipal Income Trust II’s (BLE) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Trust invests, under normal market conditions, at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

Performance

Ÿ |  | For the six months ended February 28, 2015, the Trust returned 9.01% based on market price and 5.18% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 6.44% based on market price and 4.58% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

Ÿ |  | At a time of modest price gains for the municipal bond market, the income generated from coupon payments on the Trust’s portfolio of tax-exempt bonds made a meaningful contribution to absolute performance. In addition, the use of leverage allowed the Trust to enhance its level of income. At a time in which higher-quality bonds generally outperformed, the Trust’s investment-grade holdings in the AA and A rated categories aided performance, followed by those ranked BBB and lower. Concentrations in transportation, state and local tax-backed, health care, corporate and utilities sectors also proved helpful to performance, while the Trust’s positioning with respect to duration (sensitivity to interest rate movements) and the yield curve made more modest contributions. In addition, the use of leverage allowed the Trust to enhance its level of income.

Ÿ |  | In the positive market environment, there were no material detractors from the Trust’s performance during the period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Trust Information

Symbol on NYSE MKT |  | BLE
Initial Offering Date |  | July 30, 2002
Yield on Closing Market Price as of February 28, 2015 ($15.53)1 |  | 6.10%
Tax Equivalent Yield 2 |  | 10.78%
Current Monthly Distribution per Common Share 3 |  | $0.079
Current Annualized Distribution per Common Share 3 |  | $0.948
Economic Leverage as of February 28, 2015 4 |  | 37%

| 1 |  | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

| 2 |  | Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

| 3 |  | The distribution rate is not constant and is subject to change.

| 4 |  | Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.

14 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

|  | BlackRock Municipal Income Trust II

Market Price and Net Asset Value Per Share Summary |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2/28/15 |  |  | 8/31/14 |  |  | Change |  |  | High |  |  | Low |
Market Price |  |  | $15.53 |  |  |  | $14.70 |  |  |  | 5.65% |  |  |  | $16.66 |  |  |  | $14.28 |
Net Asset Value |  |  | $15.78 |  |  |  | $15.48 |  |  |  | 1.94% |  |  |  | $16.09 |  |  |  | $15.33 |

Market Price and Net Asset Value History For the Past Five Years

Overview of the Trust’s Total Investments*

Sector Allocation |  |  |  |  |  |
|  | 2/28/15 |  |  | 8/31/14 |
Transportation |  |  | 21 | % |  |  | 20 | %
Health |  |  | 16 |  |  |  | 14 |
Utilities |  |  | 15 |  |  |  | 16 |
County/City/Special District/School District |  |  | 13 |  |  |  | 13 |
Corporate |  |  | 10 |  |  |  | 11 |
State |  |  | 10 |  |  |  | 11 |
Education |  |  | 8 |  |  |  | 8 |
Tobacco |  |  | 5 |  |  |  | 4 |
Housing |  |  | 2 |  |  |  | 3 |

Credit Quality Allocation1 |  |  |  |  |  |
|  | 2/28/15 |  |  | 8/31/14 |
AAA/Aaa |  |  | 10 | % |  |  | 7 | %
AA/Aa |  |  | 39 |  |  |  | 32 |
A |  |  | 23 |  |  |  | 28 |
BBB/Baa |  |  | 14 |  |  |  | 17 |
BB/Ba |  |  | 4 |  |  |  | 5 |
B |  |  | 2 |  |  |  | 2 |
N/R 2 |  |  | 8 |  |  |  | 9 |

| 1 |  | For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

| 2 |  | The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of February 28, 2015 and August 31, 2014, the market value of unrated securities deemed by the investment advisor to be investment grade each representing 1%, respectively, of the Trust’s total investments.

Call/Maturity Schedule3 |  |  |
Calendar Year Ended December 31, |  |  |  |
2015 |  |  | 9 | %
2016 |  |  | 4 |
2017 |  |  | 3 |
2018 |  |  | 5 |
2019 |  |  | 17 |

| 3 |  | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

| * |  | Excludes short-term securities.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 15

Trust Summary as of February 28, 2015 |  | BlackRock MuniHoldings Investment Quality Fund

Trust Overview

BlackRock MuniHoldings Investment Quality Fund’s (MFL) (the “Trust”) investment objective is to provide shareholders with current income exempt from federal income tax and to provide shareholders with the opportunity to own shares the value of which is exempt from Florida intangible personal property tax. The Trust seeks to achieve its investment objective by investing primarily in long-term, investment grade municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Trust invests at least 80% of its assets in municipal obligations with remaining maturities of one year or more at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives. Effective January 1, 2007, the Florida intangible personal property tax was repealed.

No assurance can be given that the Trust’s investment objective will be achieved.

Performance

Ÿ |  | For the six months ended February 28, 2015, the Trust returned 7.55% based on market price and 4.70% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 6.44% based on market price and 4.58% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

Ÿ |  | Municipal bond yields declined during the six-month period, while the yield curve flattened (i.e., rates on longer-dated bonds fell more than rates on shorter-dated securities). In this environment, the Trust’s duration (interest rate sensitivity) had a positive impact on performance. (Bond prices rise when rates fall.) The Trust’s longer-dated holdings in the transportation, utilities and tax-backed sectors were particularly strong contributors to performance. At a time of modest price gains for the municipal bond market, the income generated from coupon payments on the Trust’s portfolio of tax-exempt bonds made a meaningful contribution to absolute performance. In addition, the use of leverage allowed the Trust to enhance its level of income.

Ÿ |  | In the positive market environment, there were no material detractors from the Trust’s performance during the period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Trust Information

Symbol on NYSE |  | MFL
Initial Offering Date |  | September 26, 1997
Yield on Closing Market Price as of February 28, 2015 ($14.53)1 |  | 5.91%
Tax Equivalent Yield 2 |  | 10.44%
Current Monthly Distribution per Common Share 3 |  | $0.0715
Current Annualized Distribution per Common Share 3 |  | $0.8580
Economic Leverage as of February 28, 2015 4 |  | 38%

| 1 |  | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

| 2 |  | Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

| 3 |  | The distribution rate is not constant and is subject to change.

| 4 |  | Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.

16 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

|  | BlackRock MuniHoldings Investment Quality Fund

Market Price and Net Asset Value Per Share Summary |  |

|  | 2/28/15 |  |  | 8/31/14 |  |  | Change |  |  | High |  |  | Low |
Market Price |  |  | $14.53 |  |  |  | $13.92 |  |  |  | 4.38% |  |  |  | $15.15 |  |  |  | $13.64 |
Net Asset Value |  |  | $15.71 |  |  |  | $15.46 |  |  |  | 1.62% |  |  |  | $16.01 |  |  |  | $15.30 |

Market Price and Net Asset Value History For the Past Five Years

Overview of the Trust’s Total Investments*

Sector Allocation |  |  |  |  |  |  |  |
|  | 2/28/15 |  |  | 8/31/14 |
Transportation |  |  | 35 | % |  |  | 35 | %
County/City/Special District/School District |  |  | 21 |  |  |  | 18 |
Utilities |  |  | 16 |  |  |  | 19 |
State |  |  | 11 |  |  |  | 9 |
Health |  |  | 10 |  |  |  | 11 |
Education |  |  | 5 |  |  |  | 6 |
Housing |  |  | 1 |  |  |  | 1 |
Tobacco |  |  | 1 |  |  |  | 1 |

Credit Quality Allocation1 |  |  |  |  |  |
|  | 2/28/15 |  |  | 8/31/14 |
AAA/Aaa |  |  | 6 | % |  |  | 5 | %
AA/Aa |  |  | 62 |  |  |  | 65 |
A |  |  | 29 |  |  |  | 28 |
BBB/Baa |  |  | 2 |  |  |  | 2 |
N/R |  |  | 1 |  |  |  | — |

| 1 |  | For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

Call/Maturity Schedule2 |  |  |
Calendar Year Ended December 31, |  |  |  |
2015 |  |  | — |
2016 |  |  | 1 | %
2017 |  |  | 3 |
2018 |  |  | 14 |
2019 |  |  | 25 |

| 2 |  | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

| * |  | Excludes short-term securities.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 17

Trust Summary as of February 28, 2015 |  | BlackRock MuniVest Fund, Inc.

Trust Overview

BlackRock MuniVest Fund, Inc.’s (MVF) (the “Trust”) investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes as is consistent with its investment policies and prudent investment management. The Trust seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Trust primarily invests in long term municipal obligations rated investment grade at the time of investment and in long term municipal obligations with maturities of more than ten years at the time of investment. The Trust may invest up to 20% of its total assets in securities rated below investment grade or deemed equivalent at the time of purchase. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

Performance

Ÿ |  | For the six months ended February 28, 2015, the Trust returned 7.66% based on market price and 4.16% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 6.44% based on market price and 4.58% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV.

Ÿ |  | The Trust’s duration exposure (sensitivity to interest rate movements) contributed positively to performance as interest rates declined during the period. (Bond prices rise when rates fall.) The Trust’s exposure to long-maturity bonds benefited performance given that the yield curve flattened, with yields falling more significantly for bonds in the 20- to 30-year maturity range than for intermediate- and short-term bonds. The Trust’s exposure to zero-coupon bonds, which experienced stronger price performance than current coupon bonds also benefitted returns. At a time of modest price gains for the municipal bond market, the income generated from coupon payments on the Trust’s portfolio of tax-exempt bonds made a meaningful contribution to absolute performance. In addition, the use of leverage allowed the Trust to enhance its level of income.

Ÿ |  | In the positive market environment, there were no material detractors from the Trust’s performance during the period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Trust Information |  |

Symbol on NYSE MKT |  | MVF
Initial Offering Date |  | September 29, 1988
Yield on Closing Market Price as of February 28, 2015 ($10.25)1 |  | 6.26%
Tax Equivalent Yield 2 |  | 11.06%
Current Monthly Distribution per Common Share 3 |  | $0.0535
Current Annualized Distribution per Common Share 3 |  | $0.6420
Economic Leverage as of February 28, 2015 4 |  | 37%

| 1 |  | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

| 2 |  | Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

| 3 |  | The distribution rate is not constant and is subject to change.

| 4 |  | Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.

18 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

|  | BlackRock MuniVest Fund, Inc.

Market Price and Net Asset Value Per Share Summary |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2/28/15 |  |  | 8/31/14 |  |  | Change |  |  | High |  |  | Low |
Market Price |  | $ | 10.25 |  |  | $ | 9.83 |  |  |  | 4.27% |  |  | $ | 10.59 |  |  | $ | 9.46 |
Net Asset Value |  | $ | 10.36 |  |  | $ | 10.27 |  |  |  | 0.88% |  |  | $ | 10.56 |  |  | $ | 10.19 |

Market Price and Net Asset Value History For the Past Five Years

Overview of the Trust’s Total Investments*

Sector Allocation |  |  |  |  |  |
|  | 2/28/15 |  |  | 8/31/14 |
Health |  |  | 24 | % |  |  | 23 | %
Transportation |  |  | 22 |  |  |  | 22 |
County/City/Special District/School District |  |  | 14 |  |  |  | 12 |
Utilities |  |  | 10 |  |  |  | 10 |
Corporate |  |  | 9 |  |  |  | 10 |
Education |  |  | 9 |  |  |  | 10 |
State |  |  | 5 |  |  |  | 5 |
Housing |  |  | 4 |  |  |  | 5 |
Tobacco |  |  | 3 |  |  |  | 3 |

Credit Quality Allocation1 |  |  |  |  |  |
|  | 2/28/15 |  |  | 8/31/14 |
AAA/Aaa |  |  | 10 | % |  |  | 10 | %
AA/Aa |  |  | 48 |  |  |  | 49 |
A |  |  | 24 |  |  |  | 23 |
BBB/Baa |  |  | 12 |  |  |  | 12 |
BB/Ba |  |  | 1 |  |  |  | 1 |
B |  |  | 2 |  |  |  | 2 |
CCC |  |  | — | 2 |  |  | — |
N/R 3 |  |  | 3 |  |  |  | 3 |

| 1 |  | For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

| 2 |  | Representing less than 1% of the Trust’s total investments.

| 3 |  | The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of February 28, 2015 and August 31, 2014, the market value of unrated securities deemed by the investment advisor to be investment grade each representing 1%, respectively, of the Trust’s total investments.

Call/Maturity Schedule4 |  |  |
Calendar Year Ended December 31, |  |  |  |
2015 |  |  | 5 | %
2016 |  |  | 4 |
2017 |  |  | 8 |
2018 |  |  | 18 |
2019 |  |  | 19 |

| 4 |  | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

| * |  | Excludes short-term securities.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 19

Schedule of Investments February 28, 2015 (Unaudited) |  | BlackRock Municipal Bond Investment Trust (BIE) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
Alabama — 0.3% |  |  |  |  |  |  |  |
City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A, 5.38%, 12/01/35 |  | $ | 145 |  |  | $ | 162,161 |
Alaska — 0.3% |  |  |  |  |  |  |  |
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 5.00%, 6/01/46 |  |  | 180 |  |  |  | 144,916 |
California — 13.3% |  |  |  |  |  |  |  |
California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38 |  |  | 700 |  |  |  | 792,890 |
California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39 |  |  | 120 |  |  |  | 139,657 |
Kern Community College District, GO, Safety, Repair & Improvement, Election of 2002, Series C, 5.50%, 11/01/33 |  |  | 410 |  |  |  | 492,644 |
Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38 |  |  | 1,660 |  |  |  | 1,862,587 |
San Diego Regional Building Authority, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36 |  |  | 850 |  |  |  | 972,511 |
State of California, GO, Various Purposes, 6.00%, 3/01/33 |  |  | 685 |  |  |  | 832,898 |
State of California Public Works Board, LRB, Various Capital Projects, Series I, 5.50%, 11/01/31 |  |  | 500 |  |  |  | 605,490 |
State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 9/01/33 |  |  | 210 |  |  |  | 246,292 |
Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 8/01/40 |  |  | 160 |  |  |  | 192,486 |
University of California, Refunding RB, The Regents of Medical Center, Series J, 5.25%, 5/15/38 |  |  | 1,000 |  |  |  | 1,186,740 |
|  |  |  |  |  |  | 7,324,195 |
Colorado — 2.8% |  |  |  |  |  |  |  |
City & County of Denver Colorado Airport System, ARB, Sub-System, Series B, 5.25%, 11/15/32 |  |  | 750 |  |  |  | 864,878 |
Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiative, Series A, 5.50%, 7/01/34 |  |  | 580 |  |  |  | 666,269 |
|  |  |  |  |  |  | 1,531,147 |
Florida — 6.4% |  |  |  |  |  |  |  |
City of Jacksonville Florida, Refunding RB, Series A, 5.25%, 10/01/33 |  |  | 105 |  |  |  | 122,605 |
County of Miami-Dade Florida, RB, Seaport Department, Series A, 6.00%, 10/01/38 |  |  | 1,875 |  |  |  | 2,290,350 |
Osceola County Florida, RB, Sales Tax Revenue, Series A (a): |  |  |  |  |  |  |  |
5.00%, 10/01/40 |  |  | 200 |  |  |  | 225,502 |
5.00%, 10/01/44 |  |  | 465 |  |  |  | 522,609 |
Reedy Creek Improvement District, GO, Series A, 5.25%, 6/01/32 |  |  | 305 |  |  |  | 355,112 |
|  |  |  |  |  |  | 3,516,178 |
Municipal Bonds |  | Par (000) |  |  | Value |
Georgia — 1.9% |  |  |  |  |  |  |  |
City of Atlanta Georgia Water & Wastewater, Refunding RB, 5.00%, 11/01/40 (a) |  | $ | 340 |  |  | $ | 388,344 |
Municipal Electric Authority of Georgia, Refunding RB, Project One, Sub-Series D, 6.00%, 1/01/23 |  |  | 555 |  |  |  | 646,259 |
|  |  |  |  |  |  | 1,034,603 |
Illinois — 17.9% |  |  |  |  |  |  |  |
City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien, Series C, 6.50%, 1/01/41 |  |  | 1,590 |  |  |  | 1,939,561 |
City of Chicago Illinois, Refunding RB, Sales Tax, Series A, 5.25%, 1/01/38 |  |  | 250 |  |  |  | 271,028 |
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts: |  |  |  |  |  |  |  |
5.25%, 12/01/36 |  |  | 500 |  |  |  | 570,000 |
5.25%, 12/01/40 |  |  | 750 |  |  |  | 850,575 |
5.00%, 12/01/44 |  |  | 565 |  |  |  | 642,043 |
County of Cook Illinois Community College District No. 508, GO, City College of Chicago: |  |  |  |  |  |  |  |
5.50%, 12/01/38 |  |  | 250 |  |  |  | 289,270 |
5.25%, 12/01/43 |  |  | 1,000 |  |  |  | 1,130,200 |
Illinois Finance Authority, RB, Carle Foundation, Series A, 6.00%, 8/15/41 |  |  | 750 |  |  |  | 894,967 |
Illinois Finance Authority, Refunding RB, Northwestern Memorial Hospital, Series A, 6.00%, 8/15/39 |  |  | 1,000 |  |  |  | 1,167,300 |
Railsplitter Tobacco Settlement Authority, RB: |  |  |  |  |  |  |  |
5.50%, 6/01/23 |  |  | 365 |  |  |  | 429,342 |
6.00%, 6/01/28 |  |  | 105 |  |  |  | 123,203 |
State of Illinois, GO: |  |  |  |  |  |  |  |
5.25%, 2/01/31 |  |  | 255 |  |  |  | 279,730 |
5.25%, 2/01/32 |  |  | 500 |  |  |  | 546,520 |
5.50%, 7/01/33 |  |  | 500 |  |  |  | 557,995 |
5.50%, 7/01/38 |  |  | 110 |  |  |  | 122,262 |
|  |  |  |  |  |  | 9,813,996 |
Indiana — 2.5% |  |  |  |  |  |  |  |
Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39 |  |  | 1,190 |  |  |  | 1,378,175 |
Kansas — 1.9% |  |  |  |  |  |  |  |
Kansas Development Finance Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, Series C, 5.50%, 11/15/29 |  |  | 900 |  |  |  | 1,047,690 |
Kentucky — 1.7% |  |  |  |  |  |  |  |
County of Louisville & Jefferson Kentucky Metropolitan Government Parking Authority, RB, Series A, 5.75%, 12/01/34 |  |  | 800 |  |  |  | 953,040 |
Louisiana — 2.4% |  |  |  |  |  |  |  |
Louisiana Local Government Environmental Facilities & Community Development Authority, RB: |  |  |  |  |  |  |  |
LCTCS Act 360 Project, 5.00%, 10/01/37 |  |  | 475 |  |  |  | 541,771 |
Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35 |  |  | 380 |  |  |  | 456,186 |

Portfolio Abbreviations

AGC |  | Assured Guarantee Corp. |  | EDA |  | Economic Development Authority |  | IDB |  | Industrial Development Board
AGM |  | Assured Guaranty Municipal Corp. |  | EDC |  | Economic Development Corp. |  | ISD |  | Independent School District
AMBAC |  | American Municipal Bond Assurance Corp. |  | ERB |  | Education Revenue Bonds |  | LRB |  | Lease Revenue Bonds
AMT |  | Alternative Minimum Tax (subject to) |  | GARB |  | General Airport Revenue Bonds |  | M/F |  | Multi-Family
ARB |  | Airport Revenue Bonds |  | GO |  | General Obligation Bonds |  | NPFGC |  | National Public Finance Guarantee Corp.
BARB |  | Building Aid Revenue Bonds |  | HDA |  | Housing Development Authority |  | PSF-GTD |  | Public School Fund Guaranteed
BHAC |  | Berkshire Hathaway Assurance Corp. |  | HFA |  | Housing Finance Agency |  | PILOT |  | Payment in Lieu of Taxes
CAB |  | Capital Appreciation Bonds |  | HRB |  | Housing Revenue Bonds |  | RB |  | Revenue Bonds
COP |  | Certificates of Participation |  | IDA |  | Industrial Development Authority |  | S/F |  | Single-Family

See Notes to Financial Statements.

20 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Schedule of Investments (continued) |  | BlackRock Municipal Bond Investment Trust (BIE) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
Louisiana (concluded) |  |  |  |  |  |  |  |
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.50%, 5/15/29 |  | $ | 315 |  |  | $ | 346,078 |
|  |  |  |  |  |  | 1,344,035 |
Maine — 1.5% |  |  |  |  |  |  |  |
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 7.50%, 7/01/32 |  |  | 675 |  |  |  | 819,241 |
Massachusetts — 1.4% |  |  |  |  |  |  |  |
Massachusetts Development Finance Agency, Refunding RB, Trustees of Deerfield Academy, 5.00%, 10/01/40 |  |  | 375 |  |  |  | 434,471 |
Metropolitan Boston Transit Parking Corp., Refunding RB, 5.25%, 7/01/36 |  |  | 300 |  |  |  | 347,808 |
|  |  |  |  |  |  | 782,279 |
Michigan — 3.3% |  |  |  |  |  |  |  |
City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41 |  |  | 485 |  |  |  | 576,195 |
Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.00%, 10/15/38 |  |  | 500 |  |  |  | 577,870 |
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/18 (b) |  |  | 530 |  |  |  | 663,496 |
|  |  |  |  |  |  | 1,817,561 |
Mississippi — 2.9% |  |  |  |  |  |  |  |
Mississippi Development Bank, RB, Jackson Water & Sewer System Project (AGM), 6.88%, 12/01/40 |  |  | 1,000 |  |  |  | 1,307,110 |
Mississippi State University Educational Building Corp., Refunding RB, Mississippi State University Improvement Project, 5.25%, 8/01/38 |  |  | 250 |  |  |  | 288,587 |
|  |  |  |  |  |  | 1,595,697 |
Nevada — 4.3% |  |  |  |  |  |  |  |
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34 |  |  | 1,000 |  |  |  | 1,163,010 |
County of Clark Nevada Airport System, ARB, Series B, 5.75%, 7/01/42 |  |  | 1,000 |  |  |  | 1,177,860 |
|  |  |  |  |  |  | 2,340,870 |
New Jersey — 9.8% |  |  |  |  |  |  |  |
New Jersey EDA, RB, School Facilities Construction, Series UU, 5.00%, 6/15/40 |  |  | 250 |  |  |  | 270,857 |
New Jersey EDA, Refunding RB, School Facilities Construction, Series AA, 5.50%, 12/15/29 |  |  | 750 |  |  |  | 829,545 |
New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29 |  |  | 610 |  |  |  | 650,852 |
New Jersey Transportation Trust Fund Authority, RB: |  |  |  |  |  |  |  |
Transportation Program, Series AA, 5.00%, 6/15/38 |  |  | 1,835 |  |  |  | 1,973,286 |
Transportation System, Series A, 5.88%, 12/15/38 |  |  | 695 |  |  |  | 803,142 |
Transportation System, Series AA, 5.50%, 6/15/39 |  |  | 760 |  |  |  | 861,604 |
|  |  |  |  |  |  | 5,389,286 |
New York — 4.0% |  |  |  |  |  |  |  |
Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012, Series A, 5.75%, 2/15/47 |  |  | 620 |  |  |  | 721,035 |
Metropolitan Transportation Authority, RB, Series A, 5.25%, 11/15/38 |  |  | 500 |  |  |  | 577,500 |
New York Counties Tobacco Trust IV, Refunding RB, Settlement Pass Thru, Turbo Term, Series A, 6.25%, 6/01/41 (c) |  |  | 300 |  |  |  | 305,346 |
New York Liberty Development Corp., Refunding RB, 2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49 |  |  | 500 |  |  |  | 573,655 |
|  |  |  |  |  |  | 2,177,536 |
Municipal Bonds |  | Par (000) |  |  | Value |
Ohio — 2.8% |  |  |  |  |  |  |  |
County of Allen Ohio Hospital Facilities, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 6/01/38 |  | $ | 840 |  |  | $ | 953,627 |
State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1, 5.25%, 2/15/31 |  |  | 500 |  |  |  | 583,815 |
|  |  |  |  |  |  | 1,537,442 |
Pennsylvania — 7.3% |  |  |  |  |  |  |  |
Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 4/01/39 |  |  | 300 |  |  |  | 349,326 |
Pennsylvania Turnpike Commission, RB: |  |  |  |  |  |  |  |
Sub-Series A, 5.63%, 12/01/31 |  |  | 750 |  |  |  | 880,373 |
Sub-Series A, 6.00%, 12/01/41 |  |  | 1,500 |  |  |  | 1,617,360 |
Sub-Series C (AGC), 6.25%, 6/01/38 |  |  | 500 |  |  |  | 571,620 |
Township of Bristol Pennsylvania School District, GO, 5.25%, 6/01/37 |  |  | 530 |  |  |  | 611,625 |
|  |  |  |  |  |  | 4,030,304 |
South Carolina — 3.4% |  |  |  |  |  |  |  |
City of Columbia South Carolina, RB, Special Obligation, 5.00%, 2/01/44 |  |  | 1,000 |  |  |  | 1,137,970 |
County of Charleston South Carolina, RB, Special Source, 5.25%, 12/01/38 |  |  | 635 |  |  |  | 745,890 |
|  |  |  |  |  |  | 1,883,860 |
Texas — 9.3% |  |  |  |  |  |  |  |
Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, 6.00%, 1/01/41 |  |  | 890 |  |  |  | 1,034,705 |
Central Texas Turnpike System, Refunding RB, Series C, 5.00%, 8/15/42 |  |  | 130 |  |  |  | 142,956 |
City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 3/01/37 |  |  | 395 |  |  |  | 456,656 |
Conroe Texas ISD, GO, School Building, Series A, 5.75%, 2/15/18 (b) |  |  | 470 |  |  |  | 537,736 |
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45 |  |  | 1,020 |  |  |  | 1,229,100 |
North Texas Tollway Authority, RB, Special Projects, Series A, 5.50%, 9/01/41 |  |  | 500 |  |  |  | 601,035 |
North Texas Tollway Authority, Refunding RB, 1st Tier, Series K-1 (AGC), 5.75%, 1/01/38 |  |  | 250 |  |  |  | 285,615 |
Red River Education Financing Corp., RB, Texas Christian University Project, 5.25%, 3/15/38 |  |  | 180 |  |  |  | 208,631 |
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39 |  |  | 500 |  |  |  | 594,375 |
|  |  |  |  |  |  | 5,090,809 |
Virginia — 0.7% |  |  |  |  |  |  |  |
City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 1/01/43 |  |  | 145 |  |  |  | 162,532 |
Virginia Public School Authority, RB, Fluvanna County School Financing, 6.50%, 12/01/18 (b) |  |  | 200 |  |  |  | 240,994 |
|  |  |  |  |  |  | 403,526 |
Wisconsin — 1.8% |  |  |  |  |  |  |  |
Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Series C, 5.25%, 4/01/39 |  |  | 890 |  |  |  | 981,385 |
Total Municipal Bonds — 103.9% |  |  |  |  |  |  | 57,099,932 |

See Notes to Financial Statements.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 21

Schedule of Investments (continued) |  | BlackRock Municipal Bond Investment Trust (BIE) (Percentages shown are based on Net Assets)

Municipal Bonds Transferred to Tender Option Bond Trusts (d) |  | Par (000) |  |  | Value |
California — 19.3% |  |  |  |  |  |  |  |
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (e) |  | $ | 1,005 |  |  | $ | 1,134,595 |
Grossmont Union High School District, GO, Election of 2008, Series B, 5.00%, 8/01/40 |  |  | 1,300 |  |  |  | 1,485,887 |
Los Angeles Community College District California, GO, Go, Election of 2008, Series C, 5.25%, 8/01/39 (e) |  |  | 1,410 |  |  |  | 1,647,761 |
Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/19 (b) |  |  | 2,079 |  |  |  | 2,529,719 |
Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34 |  |  | 200 |  |  |  | 226,940 |
San Diego Public Facilities Financing Authority Water, RB, Series B, 5.50%, 8/01/39 |  |  | 2,234 |  |  |  | 2,610,414 |
University of California, RB, Series O, 5.75%, 5/15/34 |  |  | 810 |  |  |  | 949,228 |
|  |  |  |  |  |  | 10,584,544 |
District of Columbia — 3.4% |  |  |  |  |  |  |  |
District of Columbia, RB, Series A, 5.50%, 12/01/30 (e) |  |  | 735 |  |  |  | 866,134 |
District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 5.50%, 10/01/39 |  |  | 899 |  |  |  | 1,016,756 |
|  |  |  |  |  |  | 1,882,890 |
Illinois — 7.2% |  |  |  |  |  |  |  |
State of Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/18 (b) |  |  | 1,500 |  |  |  | 1,759,440 |
State of Illinois Toll Highway Authority, RB, Senior Priority, Series B, 5.50%, 1/01/33 |  |  | 2,000 |  |  |  | 2,210,353 |
|  |  |  |  |  |  | 3,969,793 |
Nevada — 3.2% |  |  |  |  |  |  |  |
County of Clark Nevada Water Reclamation District, GO, Limited Tax, 6.00%, 7/01/38 |  |  | 1,500 |  |  |  | 1,732,395 |
New Hampshire — 1.2% |  |  |  |  |  |  |  |
New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (e) |  |  | 585 |  |  |  | 669,189 |
New Jersey — 3.7% |  |  |  |  |  |  |  |
New Jersey Transportation Trust Fund Authority, RB, Transportation System: |  |  |  |  |  |  |  |
Series A (AMBAC), 5.00%, 12/15/32 |  |  | 1,000 |  |  |  | 1,097,770 |
Series B, 5.25%, 6/15/36 (e) |  |  | 840 |  |  |  | 917,154 |
|  |  |  |  |  |  | 2,014,924 |
New York — 13.7% |  |  |  |  |  |  |  |
City of New York New York Municipal Water Finance Authority, RB, Fiscal 2009, Series A, 5.75%, 6/15/40 |  |  | 750 |  |  |  | 862,282 |
Municipal Bonds Transferred to Tender Option Bond Trusts (d) |  | Par (000) |  |  | Value |
New York (concluded) |  |  |  |  |  |  |  |
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution: |  |  |  |  |  |  |  |
Series FF, 5.00%, 6/15/45 |  |  | 1,000 |  |  |  | 1,119,409 |
Series FF-2, 5.50%, 6/15/40 |  |  | 990 |  |  |  | 1,144,651 |
City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.25%, 1/15/39 |  |  | 1,000 |  |  |  | 1,127,275 |
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated, 5.25%, 12/15/43 |  |  | 1,170 |  |  |  | 1,350,238 |
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (e) |  |  | 680 |  |  |  | 795,750 |
New York State Dormitory Authority, ERB, Personal Income Tax, Series B, 5.25%, 3/15/38 |  |  | 1,000 |  |  |  | 1,139,870 |
|  |  |  |  |  |  | 7,539,475 |
Texas — 5.2% |  |  |  |  |  |  |  |
City of San Antonio Texas Public Service Board, Refunding RB, Series A, 5.25%, 2/01/31 (e) |  |  | 1,050 |  |  |  | 1,195,655 |
County of Harris Texas Cultural Education Facilities Finance Corp., RB, Texas Children’s Hospital Project, 5.50%, 10/01/39 |  |  | 1,450 |  |  |  | 1,679,811 |
|  |  |  |  |  |  | 2,875,466 |
Virginia — 1.0% |  |  |  |  |  |  |  |
County of Fairfax Virginia IDA, Refunding RB, Health Care, Inova Health System, Series A, 5.50%, 5/15/35 |  |  | 460 |  |  |  | 524,826 |
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 57.9% |  |  |  | 31,793,502 |
Total Long-Term Investments (Cost — $78,854,805) — 161.8% |  |  |  | 88,893,434 |
Short-Term Securities |  | Shares |  |  |  |
FFI Institutional Tax-Exempt Fund, 0.03% (f)(g) |  |  | 349,386 |  |  |  | 349,386 |
Total Short-Term Securities (Cost — $349,386) — 0.6% |  |  |  |  |  |  | 349,386 |
Total Investments (Cost — $79,204,191) — 162.4% |  |  |  | 89,242,820 |
Liabilities in Excess of Other Assets — (0.5)% |  |  |  | (245,298 | )
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (29.5%) |  |  |  | (16,237,645 | )
VRDP Shares, at Liquidation Value — (32.4%) |  |  |  | (17,800,000 | )
Net Assets Applicable to Common Shares — 100.0% |  |  | $ | 54,959,877 |

Notes to Schedule of Investments

(a) |  | When-issued security. Unsettled when-issued transactions were as follows:

Counterparty |  | Value |  |  | Unrealized Appreciation |
Pershing LLC |  | $ | 388,344 |  |  | $ | 1,421 |
Raymond James Financial |  | $ | 748,111 |  |  | $ | 4,113 |

(b) |  | U.S. government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

(c) |  | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(d) |  | Represent bonds transferred to a TOB Trust. In exchange for which the Trust received cash and residual certificates. These bonds serve as collateral in a secured borrowing. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOB Trusts.

See Notes to Financial Statements.

22 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Schedule of Investments (concluded) |  | BlackRock Municipal Bond Investment Trust (BIE)

(e) |  | All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB Trust Certificates and proceeds received from the sale of the security contributed to the TOB Trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from October 1, 2016 to November 15, 2019, is $4,102,786.

(f) |  | During the six months ended February 28, 2015, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the 1940 Act were as follows:

Affiliate |  | Shares Held at August 31, 2014 |  |  | Net Activity |  |  | Shares Held at February 28, 2015 |  |  | Income |
FFI Institutional Tax-Exempt Fund |  |  | 698,423 |  |  |  | (349,037 | ) |  |  | 349,386 |  |  | $ | 133 |

(g) |  | Represents the current yield as of report date.

Ÿ |  | As of February 28, 2015, financial futures contracts outstanding were as follows:

Contracts Short |  |  | Issue |  | Exchange |  | Expiration |  | Notional Value |  |  | Unrealized Depreciation |
| (53 | ) |  | 10-Year U.S. Treasury Note |  | Chicago Board of Trade |  | June 2015 |  | $ | 6,773,234 |  |  | $ | (29,259 | )

Ÿ |  | Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows:

| Ÿ |  | Level 1 — unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access

| Ÿ |  | Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

| Ÿ |  | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements. As of February 28, 2015, the following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-Term Investments1 |  |  | — |  |  | $ | 88,893,434 |  |  | — |  | $ | 88,893,434 |
Short-Term Securities |  | $ | 349,386 |  |  |  | — |  |  | — |  |  | 349,386 |
Total |  | $ | 349,386 |  |  | $ | 88,893,434 |  |  | — |  | $ | 89,242,820 |
1 See above Schedule of Investments for values in each state or political subdivision. |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  | Total |
Derivative Financial Instruments2 |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | (29,259 | ) |  |  | — |  |  | — |  | $ | (29,259 | )
2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of February 28, 2015, such assets and/or liabilities are categorized within the disclosure hierarchy as follows: |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash pledged for financial futures contracts |  | $ | 105,000 |  |  |  | — |  |  | — |  | $ | 105,000 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOB Trust Certificates |  |  | — |  |  | $ | (16,235,837 | ) |  | — |  |  | (16,235,837 | )
VRDP Shares |  |  | — |  |  |  | (17,800,000 | ) |  | — |  |  | (17,800,000 | )
Total |  | $ | 105,000 |  |  | $ | (34,035,837 | ) |  | — |  | $ | (33,930,837 | )
During the six months ended February 28, 2015, there were no transfers between levels. |

See Notes to Financial Statements.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 23

Schedule of Investments February 28, 2015 (Unaudited) |  | BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
Alabama — 1.8% |  |  |  |  |  |  |  |
City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC): |  |  |  |  |  |  |  |
6.00%, 6/01/34 |  | $ | 1,150 |  |  | $ | 1,349,295 |
6.00%, 6/01/39 |  |  | 450 |  |  |  | 526,572 |
City of Hoover Alabama Board of Education, Refunding, Special Tax, Capital Outlay Warrants, 4.25%, 2/15/40 |  |  | 1,275 |  |  |  | 1,321,181 |
|  |  |  |  |  |  | 3,197,048 |
Arizona — 7.5% |  |  |  |  |  |  |  |
Arizona Board of Regents, RB, Arizona State University, Series C, 5.50%, 7/01/26 |  |  | 200 |  |  |  | 234,480 |
Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital, Series A, 5.00%, 2/01/42 |  |  | 2,200 |  |  |  | 2,377,496 |
County of Pinal Arizona Electric District No. 3, Refunding RB, Electric System, 4.75%, 7/01/31 |  |  | 3,750 |  |  |  | 4,085,700 |
Salt Verde Financial Corp., RB, Senior: |  |  |  |  |  |  |  |
5.00%, 12/01/32 |  |  | 1,500 |  |  |  | 1,722,450 |
5.00%, 12/01/37 |  |  | 2,065 |  |  |  | 2,381,668 |
State of Arizona, COP, Department of Administration, Series A (AGM), 5.00%, 10/01/29 |  |  | 750 |  |  |  | 840,232 |
University Medical Center Corp., RB, 6.50%, 7/01/19 (a) |  |  | 500 |  |  |  | 582,280 |
University Medical Center Corp., Refunding RB, 6.00%, 7/01/21 (a) |  |  | 900 |  |  |  | 1,064,016 |
|  |  |  |  |  |  | 13,288,322 |
Arkansas — 4.1% |  |  |  |  |  |  |  |
Arkansas State University, RB, Jonesboro Campus, Series B: |  |  |  |  |  |  |  |
4.00%, 12/01/28 |  |  | 400 |  |  |  | 426,892 |
4.88%, 12/01/43 |  |  | 690 |  |  |  | 761,022 |
City of Benton Arkansas, RB, 4.00%, 6/01/39 |  |  | 905 |  |  |  | 960,359 |
City of Hot Springs Arkansas, RB, Wastewater, 5.00%, 12/01/38 |  |  | 1,200 |  |  |  | 1,366,788 |
City of Little Rock Arkansas, RB, 4.00%, 7/01/41 |  |  | 2,250 |  |  |  | 2,322,247 |
Pulaski County Public Facilities Board, RB, 5.00%, 12/01/42 |  |  | 465 |  |  |  | 525,478 |
University of Arkansas, RB, Fort Smith Campus, Series B, 4.00%, 6/01/39 |  |  | 920 |  |  |  | 953,423 |
|  |  |  |  |  |  | 7,316,209 |
California — 18.6% |  |  |  |  |  |  |  |
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.88%, 8/15/31 |  |  | 1,900 |  |  |  | 2,277,017 |
California HFA, RB, Home Mortgage, Series G, AMT, 5.05%, 2/01/29 |  |  | 2,285 |  |  |  | 2,342,651 |
Carlsbad California Unified School District, GO, Election of 2006, Series B, 0.00%, 5/01/34 (b) |  |  | 1,000 |  |  |  | 933,810 |
City of San Jose California, Refunding ARB, Series A-1, AMT, 5.75%, 3/01/34 |  |  | 2,000 |  |  |  | 2,319,940 |
County of Stanislaus California Tobacco Securitization Agency, RB, CAB, Sub-Series C, 0.00%, 6/01/55 (c) |  |  | 4,500 |  |  |  | 59,130 |
Dinuba California Unified School District, GO, Election of 2006 (AGM), 5.75%, 8/01/33 |  |  | 500 |  |  |  | 589,055 |
Hartnell Community College District California, GO, CAB, Election of 2002, Series D, 0.00%, 8/01/34 (b) |  |  | 1,650 |  |  |  | 1,368,032 |
Norwalk-La Mirada Unified School District, GO, Refunding, CAB, Election of 2002, Series E (AGC), 0.00%, 8/01/38 (c) |  |  | 8,000 |  |  |  | 2,939,200 |
Palomar Community College District, GO, CAB, Election of 2006, Series B: |  |  |  |  |  |  |  |
0.00%, 8/01/30 (c) |  |  | 1,500 |  |  |  | 861,105 |
0.00%, 8/01/33 (c) |  |  | 4,000 |  |  |  | 1,458,320 |
0.00%, 8/01/39 (b) |  |  | 2,000 |  |  |  | 1,555,780 |
San Diego Community College District, GO, CAB, Election of 2002, 0.00%, 8/01/33 (b) |  |  | 2,800 |  |  |  | 2,786,616 |
Municipal Bonds |  | Par (000) |  |  | Value |
California (concluded) |  |  |  |  |  |  |  |
State of California, GO, Refunding, Various Purposes: |  |  |  |  |  |  |  |
5.75%, 4/01/31 |  | $ | 2,000 |  |  | $ | 2,351,980 |
5.00%, 2/01/38 |  |  | 3,000 |  |  |  | 3,404,610 |
4.00%, 10/01/44 |  |  | 1,500 |  |  |  | 1,554,435 |
State of California, GO, Various Purposes: |  |  |  |  |  |  |  |
6.00%, 3/01/33 |  |  | 1,000 |  |  |  | 1,215,910 |
6.50%, 4/01/33 |  |  | 1,950 |  |  |  | 2,380,072 |
5.50%, 3/01/40 |  |  | 2,350 |  |  |  | 2,757,466 |
|  |  |  |  |  |  | 33,155,129 |
Colorado — 1.3% |  |  |  |  |  |  |  |
Colorado Health Facilities Authority, RB, Catholic Health Initiatives, Series D, 6.25%, 10/01/33 |  |  | 1,070 |  |  |  | 1,239,445 |
Park Creek Metropolitan District, Refunding RB, Senior Limited Property Tax (AGM), 6.00%, 12/01/38 |  |  | 750 |  |  |  | 889,957 |
University of Northern Colorado Greely, Refunding RB, Institutional Enterprise, Series A, 4.00%, 6/01/35 |  |  | 250 |  |  |  | 265,293 |
|  |  |  |  |  |  | 2,394,695 |
Connecticut — 0.3% |  |  |  |  |  |  |  |
Connecticut State Health & Educational Facility Authority, Refunding RB, Lawrence & Memorial Hospital, Series F, 5.00%, 7/01/36 |  |  | 550 |  |  |  | 607,415 |
Delaware — 0.8% |  |  |  |  |  |  |  |
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40 |  |  | 1,200 |  |  |  | 1,390,200 |
Florida — 4.6% |  |  |  |  |  |  |  |
County of Lee Florida, Refunding ARB, Series A, AMT (AGM), 5.00%, 10/01/28 |  |  | 2,000 |  |  |  | 2,226,680 |
County of Miami-Dade Florida, RB, AMT, Seaport Department, Series B, 6.00%, 10/01/31 |  |  | 4,135 |  |  |  | 5,089,647 |
County of Orange Florida Health Facilities Authority, Refunding RB, Mayflower Retirement Center, 5.00%, 6/01/36 |  |  | 125 |  |  |  | 134,218 |
Stevens Plantation Community Development District, Special Assessment, Series A, 7.10%, 5/01/35 (d)(e) |  |  | 910 |  |  |  | 678,915 |
|  |  |  |  |  |  | 8,129,460 |
Georgia — 3.0% |  |  |  |  |  |  |  |
City of Atlanta Georgia Water & Wastewater Revenue, 5.00%, 11/01/43 (f) |  |  | 4,000 |  |  |  | 4,553,920 |
Savanah Colleges of Art, RB, 4.00%, 4/01/32 |  |  | 830 |  |  |  | 825,701 |
|  |  |  |  |  |  | 5,379,621 |
Hawaii — 0.3% |  |  |  |  |  |  |  |
Hawaii State Department of Budget & Finance, Refunding RB, Special Purpose, Senior Living, Kahala Nui, 5.25%, 11/15/37 |  |  | 400 |  |  |  | 438,452 |
Idaho — 2.0% |  |  |  |  |  |  |  |
Idaho Health Facilities Authority, RB, St. Lukes Health System Project, Series A, 5.00%, 3/01/39 |  |  | 1,230 |  |  |  | 1,377,588 |
Idaho Health Facilities Authority, Refunding RB, Trinity Health Group, Series B, 6.25%, 12/01/18 (a) |  |  | 1,750 |  |  |  | 2,091,127 |
|  |  |  |  |  |  | 3,468,715 |
Illinois — 5.1% |  |  |  |  |  |  |  |
City of Chicago Illinois, Refunding ARB, O’Hare International Airport Passenger Facility Charge, Series B, AMT, 4.00%, 1/01/29 |  |  | 2,000 |  |  |  | 2,058,120 |
City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A, 5.00%, 1/01/41 |  |  | 870 |  |  |  | 949,126 |
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40 |  |  | 665 |  |  |  | 754,177 |
Illinois Finance Authority, RB, Rush University Medical Center, Series C, 6.63%, 5/01/19 (a) |  |  | 650 |  |  |  | 792,071 |

See Notes to Financial Statements.

24 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Schedule of Investments (continued) |  | BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
Illinois (concluded) |  |  |  |  |  |  |  |
Illinois Finance Authority, Refunding RB: |  |  |  |  |  |  |  |
Friendship Village Schaumburg, Series A, 5.63%, 2/15/37 |  | $ | 210 |  |  | $ | 210,029 |
OSF Healthcare System, Series A, 6.00%, 5/15/39 |  |  | 1,010 |  |  |  | 1,191,042 |
Roosevelt University Project, 6.50%, 4/01/44 |  |  | 1,000 |  |  |  | 1,128,070 |
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 6/01/28 |  |  | 1,150 |  |  |  | 1,349,364 |
State of Illinois, GO, 5.00%, 2/01/39 |  |  | 665 |  |  |  | 703,231 |
|  |  |  |  |  |  | 9,135,230 |
Indiana — 0.6% |  |  |  |  |  |  |  |
Indiana Finance Authority, Refunding RB, U.S. Steel Corp. Project, 6.00%, 12/01/26 |  |  | 1,000 |  |  |  | 1,102,950 |
Iowa — 1.5% |  |  |  |  |  |  |  |
Iowa Higher Education Loan Authority, Refunding RB, Private College Facility: |  |  |  |  |  |  |  |
Grinnell College Project 4.00%, 12/01/44 |  |  | 1,100 |  |  |  | 1,160,940 |
Upper Iowa University Project, 5.75%, 9/01/30 |  |  | 500 |  |  |  | 520,550 |
Upper Iowa University Project, 6.00%, 9/01/39 |  |  | 1,000 |  |  |  | 1,043,250 |
|  |  |  |  |  |  | 2,724,740 |
Kansas — 2.5% |  |  |  |  |  |  |  |
County of Seward Kansas Unified School District No. 480, GO, Refunding, 5.00%, 9/01/39 |  |  | 4,000 |  |  |  | 4,497,200 |
Kentucky — 1.8% |  |  |  |  |  |  |  |
Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.38%, 1/01/40 |  |  | 1,830 |  |  |  | 2,090,482 |
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C (b): |  |  |  |  |  |  |  |
0.00%, 7/01/34 |  |  | 500 |  |  |  | 358,310 |
0.00%, 7/01/39 |  |  | 830 |  |  |  | 589,848 |
0.00%, 7/01/43 |  |  | 270 |  |  |  | 190,553 |
|  |  |  |  |  |  | 3,229,193 |
Louisiana — 2.7% |  |  |  |  |  |  |  |
City of Alexandria Louisiana Utilities, RB, 5.00%, 5/01/39 |  |  | 860 |  |  |  | 969,108 |
City of New Orleans Louisiana Aviation Board, RB, Series B, AMT, 5.00%, 1/01/45 (f) |  |  | 1,955 |  |  |  | 2,142,719 |
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35 |  |  | 1,050 |  |  |  | 1,260,515 |
Louisiana Public Facilities Authority, RB, Belle Chasse Educational Foundation Project, 6.50%, 5/01/31 |  |  | 400 |  |  |  | 447,268 |
|  |  |  |  |  |  | 4,819,610 |
Maryland — 1.1% |  |  |  |  |  |  |  |
County of Anne Arundel Maryland Consolidated, Special Tax, The Villages at Two Rivers Project: |  |  |  |  |  |  |  |
5.13%, 7/01/36 |  |  | 170 |  |  |  | 173,981 |
5.25%, 7/01/44 |  |  | 170 |  |  |  | 173,640 |
Maryland Health & Higher Educational Facilities Authority, Refunding RB: |  |  |  |  |  |  |  |
5.00%, 7/01/39 |  |  | 900 |  |  |  | 1,013,643 |
5.00%, 7/01/45 |  |  | 560 |  |  |  | 628,331 |
|  |  |  |  |  |  | 1,989,595 |
Michigan — 3.6% |  |  |  |  |  |  |  |
Michigan Finance Authority, RB, Detroit Water & Sewage Disposal System, Senior Lien, Series 2014 C-2, AMT, 5.00%, 7/01/44 |  |  | 240 |  |  |  | 249,552 |
Michigan State Hospital Finance Authority, Refunding RB, Trinity Health Credit Group, Series C, 4.00%, 12/01/32 |  |  | 2,100 |  |  |  | 2,181,753 |
Municipal Bonds |  | Par (000) |  |  | Value |
Michigan (concluded) |  |  |  |  |  |  |  |
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/18 (a) |  |  | 1,950 |  |  |  | 2,441,166 |
State of Michigan Building Authority, Refunding RB, Facilities Program, Series I, 6.25%, 10/15/38 |  |  | 1,250 |  |  |  | 1,455,663 |
|  |  |  |  |  |  | 6,328,134 |
Minnesota — 3.0% |  |  |  |  |  |  |  |
City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38 |  |  | 4,600 |  |  |  | 5,396,628 |
Mississippi — 3.2% |  |  |  |  |  |  |  |
County of Warren Mississippi, RB, Gulf Opportunity Zone Bonds, International Paper Co. Project, Series A, 5.38%, 12/01/35 |  |  | 400 |  |  |  | 449,884 |
Mississippi Development Bank, RB, Special Obligation: |  |  |  |  |  |  |  |
CAB, Hinds Community College District (AGM), 5.00%, 4/01/36 |  |  | 845 |  |  |  | 928,097 |
County of Jackson Limited Tax Note (AGC), 5.50%, 7/01/32 |  |  | 1,750 |  |  |  | 2,000,863 |
University of Southern Mississippi, RB, Campus Facilities Improvements Project, 5.38%, 9/01/36 |  |  | 2,100 |  |  |  | 2,374,554 |
|  |  |  |  |  |  | 5,753,398 |
Missouri — 3.0% |  |  |  |  |  |  |  |
Missouri Development Finance Board, RB, Annual Appropriation Sewer System, Series B, 5.00%, 11/01/41 |  |  | 900 |  |  |  | 970,830 |
Missouri State Health & Educational Facilities Authority, RB: |  |  |  |  |  |  |  |
A.T. Still University of Health Sciences, 5.25%, 10/01/31 |  |  | 500 |  |  |  | 556,090 |
A.T. Still University of Health Sciences, 4.25%, 10/01/32 |  |  | 320 |  |  |  | 339,379 |
A.T. Still University of Health Sciences, 5.00%, 10/01/39 |  |  | 500 |  |  |  | 565,940 |
Heartland Regional Medical Center, 4.13%, 2/15/43 |  |  | 400 |  |  |  | 409,364 |
University of Central Missouri, Series C-2, 4.00%, 10/01/28 |  |  | 400 |  |  |  | 425,104 |
University of Central Missouri, Series C-2, 5.00%, 10/01/34 |  |  | 1,000 |  |  |  | 1,138,320 |
Missouri State Health & Educational Facilities Authority, Refunding RB, CoxHealth, Series A, 5.00%, 11/15/38 |  |  | 800 |  |  |  | 891,352 |
|  |  |  |  |  |  | 5,296,379 |
Montana — 1.1% |  |  |  |  |  |  |  |
State of Montana Board of Regents, RB, 5.00%, 11/15/43 |  |  | 1,750 |  |  |  | 2,002,193 |
Nebraska — 3.2% |  |  |  |  |  |  |  |
Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.00%, 9/01/42 |  |  | 600 |  |  |  | 658,158 |
Douglas County Hospital Authority No. 2, RB, Madonna Rehabilitation Hospital Project, Series 2014: |  |  |  |  |  |  |  |
4.00%, 5/15/33 |  |  | 1,220 |  |  |  | 1,232,139 |
5.00%, 5/15/44 |  |  | 250 |  |  |  | 274,763 |
Minden Public Schools, GO, 4.00%, 12/15/39 |  |  | 500 |  |  |  | 510,805 |
Nebraska Public Power District, Refunding RB: |  |  |  |  |  |  |  |
Series A, 5.00%, 1/01/32 |  |  | 250 |  |  |  | 282,702 |
Series A, 4.00%, 1/01/44 |  |  | 400 |  |  |  | 414,384 |
Series A-2, 5.00%, 1/01/40 |  |  | 2,000 |  |  |  | 2,231,340 |
|  |  |  |  |  |  | 5,604,291 |
Nevada — 1.6% |  |  |  |  |  |  |  |
City of Las Vegas Nevada, Special Assessment, No. 809 Summerlin Area, 5.65%, 6/01/23 |  |  | 1,200 |  |  |  | 1,212,168 |

See Notes to Financial Statements.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 25

Schedule of Investments (continued) |  | BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
Nevada (concluded) |  |  |  |  |  |  |  |
County of Clark Nevada, Refunding ARB, Department of Aviation, Subordinate Lien, Series A-2, 4.25%, 7/01/36 |  | $ | 1,000 |  |  | $ | 1,055,570 |
County of Clark Nevada, Refunding RB, Alexander Dawson School Nevada Project, 5.00%, 5/15/29 |  |  | 575 |  |  |  | 601,473 |
|  |  |  |  |  |  | 2,869,211 |
New Jersey — 10.8% |  |  |  |  |  |  |  |
County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel, Sub-Series B, 6.25%, 1/01/37 (d)(e) |  |  | 915 |  |  |  | 45,604 |
New Jersey EDA, RB: |  |  |  |  |  |  |  |
Continental Airlines, Inc. Project, Series B, AMT, 5.63%, 11/15/30 |  |  | 660 |  |  |  | 745,708 |
The Goethals Bridge Replacement Project, AMT (AGM), 5.13%, 7/01/42 |  |  | 200 |  |  |  | 220,054 |
Rutgers — The State University of New Jersey, College Avenue Redevelopment Project, 5.00%, 6/15/38 |  |  | 450 |  |  |  | 513,544 |
New Jersey EDA, Refunding RB, Special Assessment, Kapkowski Road Landfill Project, 6.50%, 4/01/28 |  |  | 7,500 |  |  |  | 9,396,450 |
New Jersey Educational Facilities Authority, Refunding RB, University of Medicine & Dentistry, Series B (a): |  |  |  |  |  |  |  |
7.13%, 6/01/19 |  |  | 630 |  |  |  | 787,223 |
7.50%, 6/01/19 |  |  | 800 |  |  |  | 1,012,096 |
New Jersey Health Care Facilities Financing Authority, Refunding RB, St. Barnabas Health Care System, Series A: |  |  |  |  |  |  |  |
4.63%, 7/01/23 |  |  | 510 |  |  |  | 569,879 |
5.63%, 7/01/37 |  |  | 1,700 |  |  |  | 1,955,986 |
5.00%, 7/01/25 |  |  | 500 |  |  |  | 570,240 |
New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series AA, 6.50%, 10/01/38 |  |  | 235 |  |  |  | 244,174 |
New Jersey Transportation Trust Fund Authority, RB, Transportation Program, Series AA, 5.00%, 6/15/44 |  |  | 3,030 |  |  |  | 3,248,614 |
|  |  |  |  |  |  | 19,309,572 |
New York — 8.7% |  |  |  |  |  |  |  |
City of New York New York, GO, Fiscal 2014, Sub-Series A-1: |  |  |  |  |  |  |  |
5.00%, 8/01/29 |  |  | 400 |  |  |  | 465,648 |
5.00%, 8/01/35 |  |  | 1,580 |  |  |  | 1,811,217 |
City of New York New York Industrial Development Agency, ARB, American Airlines, Inc., JFK International Airport, AMT, 7.75%, 8/01/31 (g) |  |  | 3,165 |  |  |  | 3,439,469 |
City of New York New York Industrial Development Agency, RB, PILOT, Queens Baseball Stadium (AMBAC), 5.00%, 1/01/39 |  |  | 1,500 |  |  |  | 1,546,830 |
County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien, Remarketing, Series A, 5.00%, 11/01/30 |  |  | 1,500 |  |  |  | 1,652,745 |
Metropolitan Transportation Authority, RB, Series B, 5.25%, 11/15/39 |  |  | 3,335 |  |  |  | 3,873,903 |
New York Counties Tobacco Trust IV, Refunding RB, Settlement Pass-Through, Turbo Term, Series A, 6.25%, 6/01/41 (h) |  |  | 900 |  |  |  | 916,038 |
New York Liberty Development Corp., Refunding RB: |  |  |  |  |  |  |  |
2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49 |  |  | 800 |  |  |  | 917,848 |
3 World Trade Center Project, Class 2, 5.38%, 11/15/40 (h) |  |  | 405 |  |  |  | 452,559 |
Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42 (h) |  |  | 400 |  |  |  | 416,032 |
|  |  |  |  |  |  | 15,492,289 |
Municipal Bonds |  | Par (000) |  |  | Value |
North Carolina — 2.0% |  |  |  |  |  |  |  |
County of Gaston North Carolina Industrial Facilities & Pollution Control Financing Authority, RB, Exempt Facilities, National Gypsum Co. Project, AMT, 5.75%, 8/01/35 |  |  | 2,695 |  |  |  | 2,700,228 |
North Carolina Medical Care Commission, Refunding RB, University Health System, Series D, 6.25%, 12/01/33 |  |  | 800 |  |  |  | 923,216 |
|  |  |  |  |  |  | 3,623,444 |
North Dakota — 0.5% |  |  |  |  |  |  |  |
City of Fargo North Dakota, Refunding RB, University Facilities Development Foundation Project, 3.00%, 12/01/30 |  |  | 400 |  |  |  | 394,068 |
County of Burleigh North Dakota, Refunding RB, St. Alexius Medical Center Project, Series A, 5.00%, 7/01/35 |  |  | 480 |  |  |  | 520,622 |
|  |  |  |  |  |  | 914,690 |
Ohio — 2.3% |  |  |  |  |  |  |  |
City of Dayton Ohio Airport Revenue, Refunding ARB, James M. Cox Dayton International Airport, AMT, 4.00%, 12/01/32 |  |  | 2,000 |  |  |  | 2,049,300 |
Northeast Ohio Regional Sewer District, Refunding RB, 4.00%, 11/15/49 |  |  | 2,000 |  |  |  | 2,060,040 |
|  |  |  |  |  |  | 4,109,340 |
Oklahoma — 0.8% |  |  |  |  |  |  |  |
Oklahoma Municipal Power Authority, RB, Power Supply System, Series A, 4.00%, 1/01/38 |  |  | 1,140 |  |  |  | 1,182,727 |
Stillwater Utilities Authority, RB, Series A, 4.00%, 10/01/42 |  |  | 250 |  |  |  | 263,653 |
|  |  |  |  |  |  | 1,446,380 |
Oregon — 2.1% |  |  |  |  |  |  |  |
Central Oregon Community College District, GO, 4.00%, 6/01/40 |  |  | 450 |  |  |  | 471,411 |
County of Jefferson Oregon, GO: |  |  |  |  |  |  |  |
5.00%, 6/01/40 |  |  | 615 |  |  |  | 707,662 |
5.00%, 6/01/45 |  |  | 875 |  |  |  | 1,000,265 |
County of Umatilla Pendleton Oregon School District No. 16R, GO, Series A, 4.00%, 6/15/38 |  |  | 265 |  |  |  | 279,525 |
Lane County School District No. 19 Springfield, GO, CAB, Series B, 0.00%, 6/15/40 (c) |  |  | 1,000 |  |  |  | 350,630 |
Oregon Health & Science University, RB, Series A, 5.75%, 7/01/39 |  |  | 750 |  |  |  | 874,447 |
|  |  |  |  |  |  | 3,683,940 |
Pennsylvania — 3.9% |  |  |  |  |  |  |  |
County of Allegheny Pennsylvania IDA, Refunding RB, U.S. Steel Corp. Project, 6.55%, 12/01/27 |  |  | 1,695 |  |  |  | 1,966,115 |
Delaware River Port Authority, RB: |  |  |  |  |  |  |  |
4.50%, 1/01/32 |  |  | 1,500 |  |  |  | 1,657,635 |
Series D (AGM), 5.00%, 1/01/40 |  |  | 2,600 |  |  |  | 2,914,444 |
Pennsylvania Economic Development Financing Authority, RB, AMT, 5.00%, 12/31/38 (f) |  |  | 330 |  |  |  | 363,637 |
|  |  |  |  |  |  | 6,901,831 |
Rhode Island — 1.3% |  |  |  |  |  |  |  |
Rhode Island Health & Educational Building Corp., RB, Hospital Financing, LifeSpan Obligation, Series A (AGC), 7.00%, 5/15/39 |  |  | 1,000 |  |  |  | 1,198,040 |
State of Rhode Island, COP, School for the Deaf Project, Series C (AGC), 5.38%, 4/01/28 |  |  | 900 |  |  |  | 1,018,638 |
|  |  |  |  |  |  | 2,216,678 |

See Notes to Financial Statements.

26 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Schedule of Investments (continued) |  | BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
Tennessee — 2.5% |  |  |  |  |  |  |  |
Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/40 |  | $ | 1,950 |  |  | $ | 2,207,946 |
County of Chattanooga-Hamilton Hospital Authority, Refunding RB, 5.00%, 10/01/44 |  |  | 875 |  |  |  | 956,524 |
County of Memphis-Shelby Tennessee Sports Authority, Inc., Refunding RB, Memphis Arena Project, Series A, 5.38%, 11/01/28 |  |  | 275 |  |  |  | 321,049 |
Johnson City Health & Educational Facilities Board, RB, Mountain States Health, Series A, 5.00%, 8/15/42 |  |  | 800 |  |  |  | 873,296 |
|  |  |  |  |  |  | 4,358,815 |
Texas — 16.6% |  |  |  |  |  |  |  |
County of Harris Texas Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B (a): |  |  |  |  |  |  |  |
7.13%, 12/01/18 |  |  | 500 |  |  |  | 612,960 |
7.25%, 12/01/18 |  |  | 1,750 |  |  |  | 2,153,427 |
County of Harris Texas Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series G (NPFGC), 0.00%, 11/15/41 (c) |  |  | 11,690 |  |  |  | 3,066,988 |
County of Matagorda Texas Navigation District No. 1, Refunding RB, Central Power & Light Co. Project, Series A, 6.30%, 11/01/29 |  |  | 1,500 |  |  |  | 1,727,835 |
County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A, 0.00%, 9/15/38 (c) |  |  | 10,760 |  |  |  | 3,812,591 |
Leander Texas ISD, GO, Refunding CAB Series D, 0.00%, 8/15/35 (c) |  |  | 4,000 |  |  |  | 1,716,080 |
Red River Education Financing Corp., RB, Texas Christian University Project, 5.25%, 3/15/38 |  |  | 760 |  |  |  | 880,886 |
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, LBJ Infrastructure Group LLC, LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40 |  |  | 2,000 |  |  |  | 2,416,960 |
Texas State Turnpike Authority, RB, CAB (AMBAC), 0.00%, 8/15/35 (c) |  |  | 45,000 |  |  |  | 13,200,750 |
|  |  |  |  |  |  | 29,588,477 |
U.S. Virgin Islands — 1.4% |  |  |  |  |  |  |  |
Virgin Islands Public Finance Authority, Refunding RB, Series C, 4.50%, 10/01/44 |  |  | 2,500 |  |  |  | 2,517,350 |
Vermont — 2.9% |  |  |  |  |  |  |  |
University of Vermont & State Agricultural College, Refunding RB, 4.00%, 10/01/37 |  |  | 2,360 |  |  |  | 2,465,185 |
Vermont Educational & Health Buildings Financing Agency, Refunding RB, Fletcher Allen Health Hospital, Series B (AGM), 5.00%, 12/01/34 |  |  | 1,590 |  |  |  | 1,710,061 |
Vermont Student Assistance Corp., RB, Series A, 4.13%, 6/15/30 |  |  | 1,000 |  |  |  | 1,016,580 |
|  |  |  |  |  |  | 5,191,826 |
Virginia — 0.6% |  |  |  |  |  |  |  |
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 6.00%, 1/01/37 |  |  | 880 |  |  |  | 1,022,586 |
Washington — 0.9% |  |  |  |  |  |  |  |
Washington Health Care Facilities Authority, RB, MultiCare Health System, Series B (AGC), 6.00%, 8/15/39 |  |  | 1,400 |  |  |  | 1,640,100 |
West Virginia — 1.2% |  |  |  |  |  |  |  |
City of Wheeling West Virginia Waterworks & Sewerage System, RB, 5.00%, 6/01/38 |  |  | 1,000 |  |  |  | 1,128,940 |
Municipal Bonds |  | Par (000) |  |  | Value |
West Virginia (concluded) |  |  |  |  |  |  |  |
West Virginia Hospital Finance Authority, Refunding RB, Valley Health System Obligation Group Series 2014, 5.00%, 1/01/44 |  |  | 900 |  |  |  | 1,000,440 |
|  |  |  |  |  |  | 2,129,380 |
Wisconsin — 0.6% |  |  |  |  |  |  |  |
WPPI Energy Power Supply Systems, Refunding RB, Series A: |  |  |  |  |  |  |  |
5.00%, 7/01/36 |  |  | 330 |  |  |  | 376,777 |
5.00%, 7/01/37 |  |  | 665 |  |  |  | 757,535 |
|  |  |  |  |  |  | 1,134,312 |
Total Municipal Bonds — 137.4% |  |  |  |  |  |  | 244,795,028 |
Municipal Bonds Transferred to Tender Option Bond Trusts (i) |
Colorado — 2.2% |  |  |  |  |  |  |  |
Colorado Health Facilities Authority, RB, Catholic Health, Series C-7 (AGM), 5.00%, 9/01/36 |  |  | 3,750 |  |  |  | 4,021,500 |
New Jersey — 0.9% |  |  |  |  |  |  |  |
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 6/15/36 (j) |  |  | 1,400 |  |  |  | 1,528,591 |
New York — 14.2% |  |  |  |  |  |  |  |
City of New York New York, GO, Fiscal 2015, Series B, 4.00%, 8/01/32 |  |  | 3,990 |  |  |  | 4,244,602 |
City of New York New York Municipal Water Finance Authority, RB, Fiscal 2009, Series A, 5.75%, 6/15/40 |  |  | 450 |  |  |  | 517,369 |
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System: |  |  |  |  |  |  |  |
2nd General Resolution, Fiscal 2013, Series CC, 5.00%, 6/15/47 |  |  | 6,000 |  |  |  | 6,791,295 |
2nd General Resolution, Series FF-2, 5.50%, 6/15/40 |  |  | 405 |  |  |  | 468,266 |
Series A, 4.75%, 6/15/30 |  |  | 3,000 |  |  |  | 3,253,830 |
Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (j) |  |  | 2,500 |  |  |  | 2,907,168 |
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated, 5.25%, 12/15/43 |  |  | 2,505 |  |  |  | 2,890,895 |
State of New York Dormitory Authority, RB, New York University, Series A, 5.00%, 7/01/38 |  |  | 2,199 |  |  |  | 2,449,227 |
State of New York Thruway Authority, Refunding RB, Transportation, Personal Income Tax, Series A, 5.00%, 3/15/31 |  |  | 1,560 |  |  |  | 1,807,884 |
|  |  |  |  |  |  | 25,330,536 |
Ohio — 2.0% |  |  |  |  |  |  |  |
County of Montgomery Ohio, RB, Catholic Health, Series C-1 (AGM), 5.00%, 10/01/41 |  |  | 1,260 |  |  |  | 1,348,212 |
Ohio Higher Educational Facility Commission, RB, Cleveland Clinic Health, Series A, 5.25%, 1/01/33 |  |  | 2,000 |  |  |  | 2,192,200 |
|  |  |  |  |  |  | 3,540,412 |
Texas — 1.0% |  |  |  |  |  |  |  |
City of San Antonio Texas Public Service Board, RB, Electric & Gas Systems, Junior Lien, 5.00%, 2/01/43 |  |  | 1,580 |  |  |  | 1,775,367 |
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 20.3% |  |  |  | 36,196,406 |
Total Long-Term Investments (Cost — $254,137,806) — 157.7% |  |  |  | 280,991,434 |

See Notes to Financial Statements.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 27

Schedule of Investments (continued) |  | BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets)

Short-Term Securities |  | Shares |  |  | Value |
FFI Institutional Tax-Exempt Fund, 0.03% (k)(l) |  |  | 1,337,487 |  |  | $ | 1,337,487 |
Total Short-Term Securities (Cost — $1,337,487) — 0.7% |  |  |  |  |  |  | 1,337,487 |
Total Investments (Cost — $255,475,293) — 158.4% |  |  |  | 282,328,921 |
Liabilities in Excess of Other Assets — (2.7)% |  |  |  | (4,742,427 | )
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (10.9%) |  |  |  | (19,499,039 | )
VMTP Shares, at Liquidation Value — (44.8%) |  |  |  | (79,900,000 | )
Net Assets Applicable to Common Shares — 100.0% |  |  | $ | 178,187,455 |

Notes to Schedule of Investments

(a) |  | U.S. government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

(b) |  | Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.

(c) |  | Zero-coupon bond.

(d) |  | Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.

(e) |  | Non-income producing security.

(f) |  | When-issued security. Unsettled when-issued transactions were as follows:

Counterparty |  | Value |  |  | Unrealized Appreciation (Depreciation) |
Citigroup Global Markets, Inc. |  | $ | 2,142,719 |  |  | $ | (2,033 | )
J.P. Morgan Securities LLC |  | $ | 363,637 |  |  | $ | 3,614 |
Pershing LLC |  | $ | 4,553,920 |  |  | $ | 12,920 |

(g) |  | Variable rate security. Rate shown is as of report date.

(h) |  | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(i) |  | Represent bonds transferred to a TOB Trust. In exchange for which the Trust received cash and residual certificates. These bonds serve as collateral in a secured borrowing. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOB Trusts.

(j) |  | All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB Trust Certificates and proceeds received from the sale of the security contributed to the TOB Trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from February 15, 2019 to June 15, 2019, is $2,411,645.

(k) |  | During the six months ended February 28, 2015, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the 1940 Act were as follows:

Affiliate |  | Shares Held at August 31, 2014 |  |  | Net Activity |  |  | Shares Held at February 28, 2015 |  |  | Income |
FFI Institutional Tax-Exempt Fund |  |  | 3,426,637 |  |  |  | (2,089,150 | ) |  |  | 1,337,487 |  |  | $ | 464 |

(l) |  | Represents the current yield as of report date.

Ÿ |  | As of February 28, 2015, financial futures contracts outstanding were as follows:

Contracts Short |  |  | Issue |  | Exchange |  | Expiration |  | Notional Value |  |  | Unrealized Depreciation |
| (305 | ) |  | 10-Year U.S. Treasury Note |  | Chicago Board of Trade |  | June 2015 |  | $ | 38,978,047 |  |  | $ | (168,378 | )

Ÿ |  | Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows:

| Ÿ |  | Level 1 — unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access

| Ÿ |  | Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

See Notes to Financial Statements.

28 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Schedule of Investments (concluded) |  | BlackRock Municipal Bond Trust (BBK)

| Ÿ |  | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements.

As of February 28, 2015, the following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-Term Investments1 |  |  | — |  |  | $ | 280,991,434 |  |  | — |  | $ | 280,991,434 |
Short-Term Securities |  | $ | 1,337,487 |  |  |  | — |  |  | — |  |  | 1,337,487 |
Total |  | $ | 1,337,487 |  |  | $ | 280,991,434 |  |  | — |  | $ | 282,328,921 |
1 See above Schedule of Investments for values in each state and political subdivision. |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  | Total |
Derivative Financial Instruments 2 |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | (168,378 | ) |  |  | — |  |  | — |  | $ | (168,378 | )
2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of February 28, 2015, such assets and/or liabilities are categorized within the disclosure hierarchy as follows: |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash pledged for financial futures contracts |  | $ | 414,000 |  |  |  | — |  |  | — |  | $ | 414,000 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOB Trust Certificates |  |  | — |  |  | $ | (19,494,759 | ) |  | — |  |  | (19,494,759 | )
VMTP Shares |  |  | — |  |  |  | (79,900,000 | ) |  | — |  |  | (79,900,000 | )
Total |  | $ | 414,000 |  |  | $ | (99,394,759 | ) |  | — |  | $ | (98,980,759 | )
During the six months ended February 28, 2015, there were no transfers between levels. |

See Notes to Financial Statements.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 29

Schedule of Investments February 28, 2015 (Unaudited) |  | Municipal Income Investment Quality Trust (BAF) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
Alabama — 1.9% |  |  |  |  |  |  |  |
City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC): |  |  |  |  |  |  |  |
6.13%, 6/01/34 |  | $ | 1,000 |  |  | $ | 1,179,310 |
6.00%, 6/01/39 |  |  | 1,000 |  |  |  | 1,170,160 |
City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A, 5.38%, 12/01/35 |  |  | 335 |  |  |  | 374,647 |
|  |  |  |  |  |  | 2,724,117 |
California — 16.3% |  |  |  |  |  |  |  |
California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38 |  |  | 2,155 |  |  |  | 2,440,968 |
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 8/15/42 |  |  | 1,120 |  |  |  | 1,347,517 |
County of Sacramento California, ARB, Senior Series A (AGC), 5.50%, 7/01/41 |  |  | 1,400 |  |  |  | 1,583,218 |
Kern Community College District, GO, Safety, Repair & Improvement, Election of 2002, Series C, 5.50%, 11/01/33 |  |  | 1,025 |  |  |  | 1,231,609 |
Los Angeles Community College District California, GO, Election of 2001, Series A (NPFGC), 5.00%, 8/01/17 (a) |  |  | 1,000 |  |  |  | 1,105,750 |
Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38 |  |  | 1,175 |  |  |  | 1,318,397 |
Los Angeles Municipal Improvement Corp., Refunding LRB, Real Property, Series B (AGC), 5.50%, 4/01/39 |  |  | 3,210 |  |  |  | 3,679,816 |
Redondo Beach Unified School District, GO, Election of 2008, Series E, 5.50%, 8/01/34 |  |  | 1,000 |  |  |  | 1,181,770 |
San Diego Public Facilities Financing Authority Water, Refunding RB, Series B (AGC), 5.38%, 8/01/34 |  |  | 1,125 |  |  |  | 1,302,131 |
State of California, GO, Various Purpose, 5.00%, 4/01/43 |  |  | 1,000 |  |  |  | 1,136,600 |
State of California Public Works Board, LRB: |  |  |  |  |  |  |  |
Department of Corrections & Rehabilitation, Series F, 5.25%, 9/01/33 |  |  | 505 |  |  |  | 592,274 |
Various Capital Projects, Series I, 5.50%, 11/01/30 |  |  | 1,000 |  |  |  | 1,216,150 |
Various Capital Projects, Series I, 5.50%, 11/01/31 |  |  | 1,500 |  |  |  | 1,816,470 |
Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 8/01/40 |  |  | 380 |  |  |  | 457,155 |
University of California, Refunding RB, Regents Medical Center, Series J, 5.25%, 5/15/38 |  |  | 2,355 |  |  |  | 2,794,773 |
|  |  |  |  |  |  | 23,204,598 |
Colorado — 3.8% |  |  |  |  |  |  |  |
City & County of Denver Colorado Airport System, ARB, Sub-System, Series B, 5.25%, 11/15/32 |  |  | 3,250 |  |  |  | 3,747,802 |
Colorado Health Facilities Authority, RB, Hospital, NCMC, Inc. Project, Series B (AGM), 6.00%, 5/15/26 |  |  | 1,425 |  |  |  | 1,625,683 |
|  |  |  |  |  |  | 5,373,485 |
Florida — 10.2% |  |  |  |  |  |  |  |
City of Jacksonville Florida, RB, Series A, 5.25%, 10/01/31 |  |  | 4,525 |  |  |  | 5,320,812 |
City of Jacksonville Florida, Refunding RB, Series A, 5.25%, 10/01/33 |  |  | 205 |  |  |  | 239,372 |
County of Miami-Dade Florida, RB, Seaport Department, Series A, 6.00%, 10/01/38 |  |  | 4,215 |  |  |  | 5,148,707 |
County of Osceola Florida, RB, Sales Tax Revenue, Series A (b): |  |  |  |  |  |  |  |
5.00%, 10/01/40 |  |  | 490 |  |  |  | 552,480 |
5.00%, 10/01/44 |  |  | 2,125 |  |  |  | 2,388,266 |
Reedy Creek Improvement District, GO, Series A, 5.25%, 6/01/32 |  |  | 745 |  |  |  | 867,404 |
|  |  |  |  |  |  | 14,517,041 |
Municipal Bonds |  | Par (000) |  |  | Value |
Georgia — 2.8% |  |  |  |  |  |  |  |
City of Atlanta Georgia Department of Aviation, Refunding GARB, Series C, 6.00%, 1/01/30 |  |  | 2,500 |  |  |  | 3,045,825 |
City of Atlanta Georgia Water & Wastewater, Refunding RB, 5.00%, 11/01/40 (b) |  |  | 845 |  |  |  | 965,151 |
|  |  |  |  |  |  | 4,010,976 |
Illinois — 25.3% |  |  |  |  |  |  |  |
City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien: |  |  |  |  |  |  |  |
Series A, 5.75%, 1/01/39 |  |  | 825 |  |  |  | 954,880 |
Series C, 6.50%, 1/01/41 |  |  | 3,740 |  |  |  | 4,562,239 |
City of Chicago Illinois, Refunding GARB, O’Hare International Airport, 3rd Lien, Series C (AGC), 5.25%, 1/01/30 |  |  | 1,000 |  |  |  | 1,134,040 |
City of Chicago Illinois Transit Authority, RB: |  |  |  |  |  |  |  |
Federal Transit Administration, Section 5309, Series A (AGC), 6.00%, 6/01/26 |  |  | 1,300 |  |  |  | 1,507,948 |
Sales Tax Receipts, 5.25%, 12/01/36 |  |  | 3,185 |  |  |  | 3,630,900 |
Sales Tax Receipts, 5.25%, 12/01/40 |  |  | 3,000 |  |  |  | 3,402,300 |
Sales Tax Receipts, 5.00%, 12/01/44 |  |  | 1,385 |  |  |  | 1,573,858 |
Sales Tax Receipts, 5.00%, 12/01/44 |  |  | 2,500 |  |  |  | 2,840,900 |
City of Chicago Illinois Transit Authority, Refunding RB, Federal Transit Administration, Section 5309 (AGM), 5.00%, 6/01/28 |  |  | 3,000 |  |  |  | 3,279,930 |
City of Chicago Illinois Wastewater Transmission, RB, 2nd Lien, 5.00%, 1/01/42 |  |  | 1,480 |  |  |  | 1,587,004 |
County of Cook Illinois Community College District No. 508, GO, City College of Chicago: |  |  |  |  |  |  |  |
5.50%, 12/01/38 |  |  | 1,250 |  |  |  | 1,446,350 |
5.25%, 12/01/43 |  |  | 3,000 |  |  |  | 3,390,600 |
Illinois Finance Authority, RB, Carle Foundation, Series A, 6.00%, 8/15/41 |  |  | 1,885 |  |  |  | 2,249,352 |
Railsplitter Tobacco Settlement Authority, RB: |  |  |  |  |  |  |  |
5.50%, 6/01/23 |  |  | 915 |  |  |  | 1,076,296 |
6.00%, 6/01/28 |  |  | 260 |  |  |  | 305,074 |
State of Illinois, GO: |  |  |  |  |  |  |  |
5.25%, 2/01/31 |  |  | 610 |  |  |  | 669,158 |
5.25%, 2/01/32 |  |  | 1,000 |  |  |  | 1,093,040 |
5.50%, 7/01/33 |  |  | 1,000 |  |  |  | 1,115,990 |
5.50%, 7/01/38 |  |  | 270 |  |  |  | 300,097 |
|  |  |  |  |  |  | 36,119,956 |
Indiana — 1.9% |  |  |  |  |  |  |  |
Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A (AGC), 5.50%, 1/01/38 |  |  | 2,415 |  |  |  | 2,753,124 |
Louisiana — 2.0% |  |  |  |  |  |  |  |
City of New Orleans Louisiana Aviation Board, Refunding GARB, Restructuring (AGC): |  |  |  |  |  |  |  |
Series A-1, 6.00%, 1/01/23 |  |  | 375 |  |  |  | 436,579 |
Series A-2, 6.00%, 1/01/23 |  |  | 150 |  |  |  | 173,901 |
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Louisiana Community and Technical Colleges Act 360 Project, 5.00%, 10/01/37 |  |  | 1,155 |  |  |  | 1,317,358 |
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.50%, 5/15/29 |  |  | 790 |  |  |  | 867,942 |
|  |  |  |  |  |  | 2,795,780 |
Michigan — 2.4% |  |  |  |  |  |  |  |
City of Detroit Michigan Water Supply System, RB, 2nd Lien, Series B (AGM), 6.25%, 7/01/36 |  |  | 1,700 |  |  |  | 1,875,984 |
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/18 (a) |  |  | 1,205 |  |  |  | 1,508,515 |
|  |  |  |  |  |  | 3,384,499 |

See Notes to Financial Statements.

30 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Schedule of Investments (continued) |  | Municipal Income Investment Quality Trust (BAF) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
Minnesota — 3.0% |  |  |  |  |  |  |  |
City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38 |  | $ | 3,680 |  |  | $ | 4,317,302 |
Mississippi — 2.2% |  |  |  |  |  |  |  |
Mississippi Development Bank, RB, Special Obligation, Jackson Water & Sewer System Project (AGM), 6.88%, 12/01/40 |  |  | 1,500 |  |  |  | 1,960,665 |
Mississippi State University Educational Building Corp., Refunding RB, Mississippi State University Improvement Project, 5.25%, 8/01/38 |  |  | 1,000 |  |  |  | 1,154,350 |
|  |  |  |  |  |  | 3,115,015 |
Nevada — 5.8% |  |  |  |  |  |  |  |
County of Clark Nevada, GO, Limited Tax, 5.00%, 6/01/38 |  |  | 5,410 |  |  |  | 5,964,092 |
County of Clark Nevada Water Reclamation District, GO, Series A, 5.25%, 7/01/34 |  |  | 2,000 |  |  |  | 2,289,320 |
|  |  |  |  |  |  | 8,253,412 |
New Jersey — 5.5% |  |  |  |  |  |  |  |
New Jersey EDA, RB, School Facilities Construction, Series UU, 5.00%, 6/15/40 |  |  | 610 |  |  |  | 660,892 |
New Jersey Health Care Facilities Financing Authority, RB, Virtua Health, Series A (AGC), 5.50%, 7/01/38 |  |  | 1,300 |  |  |  | 1,464,710 |
New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29 |  |  | 1,540 |  |  |  | 1,643,134 |
New Jersey Transportation Trust Fund Authority, RB: |  |  |  |  |  |  |  |
Transportation Program, Series AA, 5.50%, 6/15/39 |  |  | 1,620 |  |  |  | 1,836,578 |
Transportation System, Series A (AGC), 5.50%, 12/15/38 |  |  | 2,000 |  |  |  | 2,294,040 |
|  |  |  |  |  |  | 7,899,354 |
New York — 4.9% |  |  |  |  |  |  |  |
City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-4 (AGC), 5.50%, 1/15/29 |  |  | 2,465 |  |  |  | 2,849,318 |
Metropolitan Transportation Authority, RB: |  |  |  |  |  |  |  |
Series A, 5.25%, 11/15/38 |  |  | 1,565 |  |  |  | 1,807,575 |
Series A-1, 5.25%, 11/15/39 |  |  | 1,000 |  |  |  | 1,159,760 |
New York State Dormitory Authority, Refunding RB, Series C, 5.00%, 3/15/42 |  |  | 1,000 |  |  |  | 1,141,290 |
|  |  |  |  |  |  | 6,957,943 |
Ohio — 0.4% |  |  |  |  |  |  |  |
State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1, 5.25%, 2/15/31 |  |  | 470 |  |  |  | 548,786 |
Pennsylvania — 2.6% |  |  |  |  |  |  |  |
Pennsylvania Turnpike Commission, RB, Series C, 5.00%, 12/01/43 |  |  | 1,720 |  |  |  | 1,946,404 |
Township of Bristol Pennsylvania School District, GO, 5.25%, 6/01/37 |  |  | 1,500 |  |  |  | 1,731,015 |
|  |  |  |  |  |  | 3,677,419 |
South Carolina — 1.3% |  |  |  |  |  |  |  |
County of Charleston South Carolina, RB, Special Source, 5.25%, 12/01/38 |  |  | 1,525 |  |  |  | 1,791,311 |
Texas — 14.3% |  |  |  |  |  |  |  |
Austin Community College District Public Facility Corp., RB, Educational Facilities Project, Round Rock Campus, 5.25%, 8/01/33 |  |  | 2,000 |  |  |  | 2,241,400 |
Central Texas Transportation Commission Turnpike System, Refunding RB, Series C, 5.00%, 8/15/42 |  |  | 315 |  |  |  | 346,393 |
City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 3/01/37 |  |  | 980 |  |  |  | 1,132,968 |
City of Frisco Texas ISD, GO, School Building (AGC), 5.50%, 8/15/41 |  |  | 3,365 |  |  |  | 3,983,823 |
Municipal Bonds |  | Par (000) |  |  | Value |
Texas (concluded) |  |  |  |  |  |  |  |
City of Houston Texas Utility System, Refunding RB, Combined 1st Lien, Series A (AGC): |  |  |  |  |  |  |  |
6.00%, 11/15/35 |  |  | 2,600 |  |  |  | 3,109,730 |
6.00%, 11/15/36 |  |  | 2,215 |  |  |  | 2,649,251 |
5.38%, 11/15/38 |  |  | 1,000 |  |  |  | 1,149,530 |
County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Christus Health, Series A (AGC): |  |  |  |  |  |  |  |
6.50%, 1/01/19 (a) |  |  | 205 |  |  |  | 245,783 |
6.50%, 7/01/37 |  |  | 795 |  |  |  | 922,876 |
Lower Colorado River Authority, Refunding RB, 5.50%, 5/15/33 |  |  | 1,000 |  |  |  | 1,183,210 |
North Texas Tollway Authority, Refunding RB, 1st Tier: |  |  |  |  |  |  |  |
(AGM), 6.00%, 1/01/43 |  |  | 1,000 |  |  |  | 1,180,830 |
Series K-1 (AGC), 5.75%, 1/01/38 |  |  | 1,500 |  |  |  | 1,713,690 |
Red River Education Financing Corp., RB, Texas Christian University Project, 5.25%, 3/15/38 |  |  | 440 |  |  |  | 509,986 |
|  |  |  |  |  |  | 20,369,470 |
Virginia — 1.1% |  |  |  |  |  |  |  |
City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 1/01/43 |  |  | 370 |  |  |  | 414,737 |
Virginia Public School Authority, RB, Fluvanna County School Financing, 6.50%, 12/01/18 (a) |  |  | 1,000 |  |  |  | 1,204,970 |
|  |  |  |  |  |  | 1,619,707 |
Washington — 1.5% |  |  |  |  |  |  |  |
City of Seattle Washington Municipal Light & Power, Refunding RB, Series A, 5.25%, 2/01/36 |  |  | 1,025 |  |  |  | 1,175,132 |
State of Washington, GO, Various Purposes, Series B, 5.25%, 2/01/36 |  |  | 795 |  |  |  | 932,463 |
|  |  |  |  |  |  | 2,107,595 |
Total Municipal Bonds — 109.2% |  |  |  |  |  |  | 155,540,890 |
Municipal Bonds Transferred to Tender Option Bond Trusts (c) |
California — 8.9% |  |  |  |  |  |  |  |
San Marcos Unified School District, GO, Election of 2010, Series A, 5.25%, 8/01/31 |  |  | 10,680 |  |  |  | 12,727,676 |
District of Columbia — 0.6% |  |  |  |  |  |  |  |
District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 10/01/18 (a)(d) |  |  | 760 |  |  |  | 896,581 |
Illinois — 2.3% |  |  |  |  |  |  |  |
State of Illinois Toll Highway Authority, RB, Senior Priority, Series B, 5.50%, 1/01/33 |  |  | 2,999 |  |  |  | 3,315,530 |
Kentucky — 0.7% |  |  |  |  |  |  |  |
Kentucky State Property & Building Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/27 |  |  | 898 |  |  |  | 1,030,010 |
Nevada — 5.0% |  |  |  |  |  |  |  |
County of Clark Nevada Water Reclamation District, GO, Limited Tax, 6.00%, 7/01/38 |  |  | 2,000 |  |  |  | 2,309,860 |
Las Vegas Valley Water District, GO, Refunding, Series C, 5.00%, 6/01/28 |  |  | 4,100 |  |  |  | 4,746,119 |
|  |  |  |  |  |  | 7,055,979 |
New Jersey — 6.3% |  |  |  |  |  |  |  |
New Jersey EDA, RB, School Facilities Construction (AGC): |  |  |  |  |  |  |  |
6.00%, 12/15/18 (a) |  |  | 329 |  |  |  | 391,432 |
6.00%, 12/15/34 |  |  | 671 |  |  |  | 777,838 |

See Notes to Financial Statements.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 31

Schedule of Investments (continued) |  | Municipal Income Investment Quality Trust (BAF) (Percentages shown are based on Net Assets)

Municipal Bonds Transferred to Tender Option Bond Trusts (c) |  | Par (000) |  |  | Value |
New Jersey (concluded) |  |  |  |  |  |  |  |
New Jersey State Turnpike Authority, RB, Series A, 5.00%, 1/01/38 (d) |  | $ | 6,020 |  |  | $ | 6,723,979 |
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 6/15/36 (d) |  |  | 1,000 |  |  |  | 1,091,851 |
|  |  |  |  |  |  | 8,985,100 |
New York — 11.7% |  |  |  |  |  |  |  |
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution: |  |  |  |  |  |  |  |
Series BB, 5.25%, 6/15/44 |  |  | 4,993 |  |  |  | 5,722,105 |
Series FF, 5.00%, 6/15/45 |  |  | 3,019 |  |  |  | 3,380,617 |
City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.25%, 1/15/39 |  |  | 900 |  |  |  | 1,014,547 |
Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (d) |  |  | 1,000 |  |  |  | 1,162,867 |
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated, 5.25%, 12/15/43 |  |  | 2,955 |  |  |  | 3,410,218 |
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (d) |  |  | 1,740 |  |  |  | 2,036,183 |
|  |  |  | 16,726,537 |
Texas — 5.5% |  |  |  |  |  |  |  |
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Baylor Health Care System Project, Series A, 5.00%, 11/15/38 |  |  | 4,456 |  |  |  | 4,984,262 |
Municipal Bonds Transferred to Tender Option Bond Trusts (c) |  | Par (000) |  |  | Value |
Texas (concluded) |  |  |  |  |  |  |  |
North Texas Tollway Authority, RB, Special Projects System, Series A, 5.50%, 9/01/41 |  |  | 2,310 |  |  |  | 2,776,782 |
|  |  |  | 7,761,044 |
Utah — 0.8% |  |  |  |  |  |  |  |
City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 8/15/41 |  |  | 1,004 |  |  |  | 1,113,475 |
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 41.8% |  |  |  | 59,611,932 |
Total Long-Term Investments (Cost — $192,700,517) — 151.0% |  |  |  | 215,152,822 |
Short-Term Securities |  | Shares |  |  |  |
FFI Institutional Tax-Exempt Fund, 0.03% (e)(f) |  |  | 2,533,005 |  |  |  | 2,533,005 |
Total Short-Term Securities (Cost — $2,533,005) — 1.8% |  |  |  | 2,533,005 |
Total Investments (Cost — $195,233,522) — 152.8% |  |  |  | 217,685,827 |
Liabilities in Excess of Other Assets — (1.0)% |  |  |  | (1,409,946 | )
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (22.2)% |  |  |  | (31,600,484 | )
VMTP Shares, at Liquidation Value — (29.6)% |  |  |  | (42,200,000 | )
Net Assets Applicable to Common Shares — 100.0% |  |  | $ | 142,475,397 |

Notes to Schedule of Investments

(a) |  | U.S. government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

(b) |  | When-issued security. Unsettled when-issued transactions were as follows:

Counterparty |  | Value |  |  | Unrealized Appreciation |
Pershing LLC |  | $ | 965,151 |  |  | $ | 3,532 |
Raymond James Financial |  | $ | 2,940,746 |  |  | $ | 12,589 |

(c) |  | Represent bonds transferred to a TOB Trust. In exchange for which the Trust received cash and residual certificates. These bonds serve as collateral in a secured borrowing. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOB Trusts.

(d) |  | All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB Trust Certificates and proceeds received from the sale of the security contributed to the TOB Trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from October 1, 2016 to July 1, 2020, is $7,486,055.

(e) |  | During the six months ended February 28, 2015, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the 1940 Act were as follows:

Affiliate |  | Shares Held at August 31, 2014 |  |  | Net Activity |  |  | Shares Held at February 28, 2015 |  |  | Income |
FFI Institutional Tax-Exempt Fund |  |  | 1,321,380 |  |  |  | 1,211,625 |  |  |  | 2,533,005 |  |  | $ | 181 |

(f) |  | Represents the current yield as of report date.

Ÿ |  | As of February 28, 2015, financial futures contracts outstanding were as follows:

Contracts Short |  |  | Issue |  | Exchange |  | Expiration |  | Notional Value |  |  | Unrealized Depreciation |
| (142 | ) |  | 10-Year U.S. Treasury Note |  | Chicago Board of Trade |  | June 2015 |  | $ | 18,147,156 |  |  | $ | (78,393 | )

Ÿ |  | Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows:

| Ÿ |  | Level 1 — unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access

See Notes to Financial Statements.

32 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Schedule of Investments (concluded) |  | Municipal Income Investment Quality Trust (BAF)

| Ÿ |  | Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

| Ÿ |  | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements.

As of February 28, 2015, the following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-Term Investments 1 |  |  | — |  |  | $ | 215,152,822 |  |  | — |  | $ | 215,152,822 |
Short-Term Securities |  | $ | 2,533,005 |  |  |  | — |  |  | — |  |  | 2,533,005 |
Total |  | $ | 2,533,005 |  |  | $ | 215,152,822 |  |  | — |  | $ | 217,685,827 |
1 See above Schedule of Investments for values in each state or political subdivision. |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  | Total |
Derivative Financial Instruments 2 |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | (78,393 | ) |  |  | — |  |  | — |  | $ | (78,393 | )
2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of February 28, 2015, such assets and/or liabilities are categorized within the disclosure hierarchy as follows: |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash pledged for financial futures contracts |  | $ | 202,000 |  |  |  | — |  |  | — |  | $ | 202,000 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOB Trust Certificates |  |  | — |  |  | $ | (31,594,766 | ) |  | — |  |  | (31,594,766 | )
VMTP Shares |  |  | — |  |  |  | (42,200,000 | ) |  | — |  |  | (42,200,000 | )
Total |  | $ | 202,000 |  |  | $ | (73,794,766 | ) |  | — |  | $ | (73,592,766 | )
During the six months ended February 28, 2015, there were no transfers between levels. |

See Notes to Financial Statements.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 33

Schedule of Investments February 28, 2015 (Unaudited) |  | BlackRock Municipal Income Quality Trust (BYM) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
Alabama — 3.8% |  |  |  |  |  |  |  |
City of Birmingham Alabama Airport Authority, ARB (AGM), 5.50%, 7/01/40 |  | $ | 5,800 |  |  | $ | 6,721,910 |
City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC), 6.00%, 6/01/39 |  |  | 1,495 |  |  |  | 1,749,389 |
County of Jefferson Alabama, RB, Limited Obligation School, Series A, 4.75%, 1/01/25 |  |  | 2,800 |  |  |  | 2,810,500 |
State of Alabama Docks Department, Refunding RB, 6.00%, 10/01/40 |  |  | 3,800 |  |  |  | 4,464,734 |
|  |  |  |  |  |  | 15,746,533 |
Alaska — 0.3% |  |  |  |  |  |  |  |
Alaska Industrial Development & Export Authority, RB, Providence Health Services, Series A, 5.50%, 10/01/41 |  |  | 1,070 |  |  |  | 1,238,643 |
Arizona — 1.5% |  |  |  |  |  |  |  |
City of Phoenix Civic Improvement Corp., RB, Civil Plaza Expansion Project, Sub-Series A, 5.00%, 7/01/37 |  |  | 4,490 |  |  |  | 4,555,958 |
State of Arizona, COP, Department of Administration, Series A (AGM): |  |  |  |  |  |  |  |
5.00%, 10/01/27 |  |  | 1,250 |  |  |  | 1,409,337 |
5.25%, 10/01/28 |  |  | 250 |  |  |  | 284,593 |
|  |  |  |  |  |  | 6,249,888 |
Arkansas — 0.1% |  |  |  |  |  |  |  |
Pulaski County Public Facilities Board, RB, 5.00%, 12/01/42 |  |  | 435 |  |  |  | 491,576 |
California — 14.4% |  |  |  |  |  |  |  |
California Health Facilities Financing Authority, RB, St. Joseph Health System, Series A, 5.75%, 7/01/39 |  |  | 625 |  |  |  | 726,150 |
California Infrastructure & Economic Development Bank, RB, Bay Area Toll Bridges, 1st Lien, Series A (AMBAC), 5.00%, 1/01/28 (a) |  |  | 10,100 |  |  |  | 13,065,360 |
California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 4/01/42 |  |  | 1,620 |  |  |  | 1,809,167 |
Coast Community College District, GO, CAB, Election of 2002, Series C (AGM): |  |  |  |  |  |  |  |
5.00%, 8/01/31 |  |  | 7,450 |  |  |  | 8,279,483 |
0.00%, 8/01/36 (b) |  |  | 4,200 |  |  |  | 1,361,262 |
County of Orange California Sanitation District, COP, Series B (AGM), 5.00%, 2/01/17 (a) |  |  | 2,500 |  |  |  | 2,717,225 |
Monterey Peninsula Community College District, GO, CAB, Series C (AGM) (b): |  |  |  |  |  |  |  |
0.00%, 8/01/31 |  |  | 13,575 |  |  |  | 6,219,386 |
0.00%, 8/01/32 |  |  | 14,150 |  |  |  | 6,126,101 |
Mount San Antonio Community College District, GO, Refunding, CAB, Election of 2008, Series A, 0.00%, 8/01/43 (c) |  |  | 1,580 |  |  |  | 1,101,687 |
San Diego California Unified School District, GO, CAB, Election of 2008 (b): |  |  |  |  |  |  |  |
Series C, 0.00%, 7/01/38 |  |  | 2,000 |  |  |  | 777,240 |
Series G, 0.00%, 7/01/34 |  |  | 725 |  |  |  | 302,731 |
Series G, 0.00%, 7/01/35 |  |  | 775 |  |  |  | 305,831 |
Series G, 0.00%, 7/01/36 |  |  | 1,155 |  |  |  | 426,287 |
Series G, 0.00%, 7/01/37 |  |  | 770 |  |  |  | 267,744 |
San Diego California Unified School District, GO, Refunding, CAB, Election of 2008, Series R-1, 0.00%, 7/01/31 (b) |  |  | 1,400 |  |  |  | 760,354 |
San Jose California Unified School District, GO, Election of 2002, Series B (NPFGC), 5.00%, 8/01/15 (a) |  |  | 2,350 |  |  |  | 2,398,574 |
State of California, GO, Refunding, Various Purpose, 5.00%, 10/01/41 |  |  | 1,100 |  |  |  | 1,241,240 |
Municipal Bonds |  | Par (000) |  |  | Value |
California (concluded) |  |  |  |  |  |  |  |
State of California, GO, Various Purpose, 5.00%, 4/01/42 |  |  | 5,000 |  |  |  | 5,689,400 |
State of California Public Works Board, LRB: |  |  |  |  |  |  |  |
Various Capital Projects, Series I, 5.50%, 11/01/33 |  |  | 1,415 |  |  |  | 1,716,084 |
Various Judicial Council Projects, Series A, 5.00%, 3/01/38 |  |  | 780 |  |  |  | 879,700 |
Yosemite Community College District, GO, CAB, Election of 2004, Series D, 0.00%, 8/01/37 (b) |  |  | 10,000 |  |  |  | 4,042,000 |
|  |  |  |  |  |  | 60,213,006 |
Colorado — 0.9% |  |  |  |  |  |  |  |
Regional Transportation District, COP, Refunding, Series A, 5.38%, 6/01/31 |  |  | 960 |  |  |  | 1,109,059 |
Regional Transportation District, COP, Series A, 5.00%, 6/01/39 |  |  | 2,545 |  |  |  | 2,871,193 |
|  |  |  |  |  |  | 3,980,252 |
District of Columbia — 2.3% |  |  |  |  |  |  |  |
District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, 6.75%, 5/15/40 |  |  | 9,500 |  |  |  | 9,500,855 |
Florida — 13.1% |  |  |  |  |  |  |  |
City of Lakeland Florida, RB, Regional Health, 5.00%, 11/15/40 |  |  | 1,770 |  |  |  | 1,951,708 |
County of Broward Florida School Board, COP, Series A (AGM), 5.25%, 7/01/33 |  |  | 1,400 |  |  |  | 1,554,868 |
County of Broward Florida Water & Sewer Utility, Refunding RB, Series A, 5.25%, 10/01/34 |  |  | 6,750 |  |  |  | 7,592,670 |
County of Duval Florida School Board, COP, Master Lease Program (AGM), 5.00%, 7/01/33 |  |  | 3,475 |  |  |  | 3,757,483 |
County of Miami-Dade Florida, RB: |  |  |  |  |  |  |  |
CAB, Special Obligation, Sub-Series A (NPFGC), 0.00%, 10/01/38 (b) |  |  | 15,000 |  |  |  | 4,437,300 |
Transit System Sales Surtax (AGM), 5.00%, 7/01/35 |  |  | 1,300 |  |  |  | 1,435,096 |
Seaport Department, Series A, 6.00%, 10/01/38 |  |  | 2,770 |  |  |  | 3,383,611 |
County of Miami-Dade Florida, Refunding ARB, Aviation, Miami International Airport, Series A-1, 5.50%, 10/01/41 |  |  | 5,000 |  |  |  | 5,792,600 |
County of Miami-Dade Florida Aviation, Refunding ARB, Series A, 5.50%, 10/01/36 |  |  | 5,000 |  |  |  | 5,763,850 |
County of Orange Florida School Board, COP, Series A, 5.00%, 8/01/16 (a) |  |  | 6,000 |  |  |  | 6,397,680 |
County of Sarasota Florida Public Hospital District, RB, Sarasota Memorial Hospital Project, Series A, 5.63%, 7/01/39 |  |  | 300 |  |  |  | 334,299 |
Florida Housing Finance Corp., RB, Homeowner Mortgage, Series 3 (Ginnie Mae, Fannie Mae & Freddie Mac), 5.45%, 7/01/33 |  |  | 620 |  |  |  | 649,772 |
Florida State Department of Environmental Protection, RB, Florida Forever Project, Series B (NPFGC), 5.00%, 7/01/27 |  |  | 6,150 |  |  |  | 6,744,213 |
Reedy Creek Improvement District, GO, Series A, 5.25%, 6/01/33 |  |  | 1,340 |  |  |  | 1,556,973 |
South Florida Water Management District, COP, (AMBAC), 5.00%, 10/01/36 |  |  | 1,000 |  |  |  | 1,060,600 |
Tohopekaliga Water Authority, Refunding RB, Series A, 5.25%, 10/01/36 |  |  | 2,000 |  |  |  | 2,324,500 |
|  |  |  |  |  |  | 54,737,223 |
Georgia — 2.9% |  |  |  |  |  |  |  |
City of Atlanta Georgia Department of Aviation, Refunding GARB, Series C, 6.00%, 1/01/30 |  |  | 7,500 |  |  |  | 9,137,475 |
County of Burke Georgia Development Authority, Refunding RB, Oglethorpe Power-Vogtle Project, Series C, 5.70%, 1/01/43 |  |  | 1,250 |  |  |  | 1,368,288 |

See Notes to Financial Statements.

34 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Schedule of Investments (continued) |  | BlackRock Municipal Income Quality Trust (BYM) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
Georgia (concluded) |  |  |  |  |  |  |  |
County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 8/15/54 |  | $ | 545 |  |  | $ | 635,045 |
Private Colleges & Universities Authority, RB, Savannah College of Art & Design: |  |  |  |  |  |  |  |
5.00%, 4/01/31 |  |  | 210 |  |  |  | 233,484 |
5.00%, 4/01/33 |  |  | 155 |  |  |  | 171,444 |
5.00%, 4/01/44 |  |  | 695 |  |  |  | 761,963 |
|  |  |  |  |  |  | 12,307,699 |
Hawaii — 1.4% |  |  |  |  |  |  |  |
State of Hawaii Harbor System, RB, Series A, 5.50%, 7/01/35 |  |  | 5,000 |  |  |  | 5,767,550 |
Illinois — 14.5% |  |  |  |  |  |  |  |
City of Chicago Illinois, GO, Refunding, Series A: |  |  |  |  |  |  |  |
Project, 5.25%, 1/01/33 |  |  | 3,000 |  |  |  | 3,120,300 |
5.00%, 1/01/34 |  |  | 6,600 |  |  |  | 6,741,504 |
City of Chicago Illinois, Refunding RB, Sales Tax Receipts, Series A, 5.00%, 1/01/41 |  |  | 4,875 |  |  |  | 5,188,121 |
City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien, Series A, 5.63%, 1/01/35 |  |  | 1,525 |  |  |  | 1,757,242 |
City of Chicago Illinois O’Hare International Airport, Refunding GARB, Senior Lien, Series D, 5.25%, 1/01/34 |  |  | 9,800 |  |  |  | 11,227,468 |
City of Chicago Illinois Park District, GO, Harbor Facilities Revenue, Series C, 5.25%, 1/01/40 |  |  | 600 |  |  |  | 652,392 |
City of Chicago Illinois Transit Authority, RB: |  |  |  |  |  |  |  |
5.25%, 12/01/49 |  |  | 3,500 |  |  |  | 3,993,500 |
Sales Tax Receipts, 5.25%, 12/01/36 |  |  | 650 |  |  |  | 741,000 |
County of Cook Illinois Community College District No. 508, GO, City College of Chicago: |  |  |  |  |  |  |  |
5.13%, 12/01/38 |  |  | 7,700 |  |  |  | 8,655,262 |
5.50%, 12/01/38 |  |  | 1,000 |  |  |  | 1,157,080 |
County of Cook Illinois Forest Preserve District, GO, Refunding, Limited Tax Project, Series B, 5.00%, 12/15/37 |  |  | 310 |  |  |  | 345,200 |
Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project, Series B, 4.25%, 6/15/42 |  |  | 755 |  |  |  | 774,351 |
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 6/01/28 |  |  | 710 |  |  |  | 833,086 |
State of Illinois, GO: |  |  |  |  |  |  |  |
5.25%, 2/01/33 |  |  | 2,435 |  |  |  | 2,652,007 |
5.50%, 7/01/33 |  |  | 880 |  |  |  | 982,071 |
5.25%, 2/01/34 |  |  | 5,910 |  |  |  | 6,422,870 |
5.50%, 7/01/38 |  |  | 1,475 |  |  |  | 1,639,418 |
5.00%, 2/01/39 |  |  | 2,200 |  |  |  | 2,326,478 |
University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 4/01/39 |  |  | 1,020 |  |  |  | 1,144,175 |
|  |  |  |  |  |  | 60,353,525 |
Indiana — 1.9% |  |  |  |  |  |  |  |
Indiana Finance Authority, RB, CWA Authority Project, 1st Lien, Series A, 5.25%, 10/01/38 |  |  | 1,100 |  |  |  | 1,266,408 |
Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A (AGC), 5.50%, 1/01/38 |  |  | 5,750 |  |  |  | 6,555,058 |
|  |  |  |  |  |  | 7,821,466 |
Iowa — 2.2% |  |  |  |  |  |  |  |
Iowa Finance Authority, RB, Iowa Health Care Facilities: |  |  |  |  |  |  |  |
Genesis Health System, 5.50%, 7/01/33 |  |  | 3,000 |  |  |  | 3,542,610 |
Series A (AGC), 5.63%, 8/15/37 |  |  | 5,000 |  |  |  | 5,739,100 |
|  |  |  |  |  |  | 9,281,710 |
Municipal Bonds |  | Par (000) |  |  | Value |
Kentucky — 0.4% |  |  |  |  |  |  |  |
State of Kentucky Property & Building Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/29 |  |  | 1,500 |  |  |  | 1,700,340 |
Louisiana — 1.6% |  |  |  |  |  |  |  |
Louisiana Local Government Environmental Facilities & Community Development Authority, RB: |  |  |  |  |  |  |  |
East Baton Rouge Sewerage Commission Projects, Sub-Lien, Series A, 5.00%, 2/01/43 |  |  | 285 |  |  |  | 318,126 |
LCTCS Act 360 Project, 5.00%, 10/01/39 |  |  | 880 |  |  |  | 1,002,144 |
State of Louisiana Gasoline & Fuels Tax, RB, Series A (AGM), 5.00%, 5/01/16 (a) |  |  | 5,000 |  |  |  | 5,270,600 |
|  |  |  |  |  |  | 6,590,870 |
Massachusetts — 0.4% |  |  |  |  |  |  |  |
Massachusetts School Building Authority, RB, Dedicated Sales Tax, Senior, Series A, 5.00%, 5/15/43 |  |  | 1,395 |  |  |  | 1,588,068 |
Michigan — 4.8% |  |  |  |  |  |  |  |
City of Detroit Michigan Sewage Disposal System, Refunding RB, 2nd Lien, Series E (BHAC), 5.75%, 7/01/31 |  |  | 3,000 |  |  |  | 3,336,360 |
City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41 |  |  | 1,100 |  |  |  | 1,306,833 |
Michigan Finance Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/39 |  |  | 9,050 |  |  |  | 10,155,639 |
State of Michigan Building Authority, Refunding RB, Facilities Program: |  |  |  |  |  |  |  |
Series I-A, 5.38%, 10/15/36 |  |  | 2,000 |  |  |  | 2,261,240 |
Series I-A, 5.38%, 10/15/41 |  |  | 800 |  |  |  | 907,568 |
Series II-A, 5.38%, 10/15/36 |  |  | 1,500 |  |  |  | 1,698,810 |
Western Michigan University, Refunding RB, General (AGM), 5.00%, 11/15/39 |  |  | 430 |  |  |  | 482,193 |
|  |  |  |  |  |  | 20,148,643 |
Nebraska — 1.7% |  |  |  |  |  |  |  |
Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.25%, 9/01/37 |  |  | 6,345 |  |  |  | 7,090,601 |
Nevada — 1.9% |  |  |  |  |  |  |  |
County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A: |  |  |  |  |  |  |  |
5.25%, 7/01/42 |  |  | 3,000 |  |  |  | 3,397,530 |
(AGM), 5.25%, 7/01/39 |  |  | 4,100 |  |  |  | 4,645,300 |
|  |  |  |  |  |  | 8,042,830 |
New Jersey — 6.7% |  |  |  |  |  |  |  |
New Jersey EDA, RB, School Facilities Construction, Series UU: |  |  |  |  |  |  |  |
5.00%, 6/15/34 |  |  | 635 |  |  |  | 693,153 |
5.00%, 6/15/40 |  |  | 1,570 |  |  |  | 1,700,985 |
New Jersey Educational Facilities Authority, RB, Higher Educational Capital Improvement Fund, Series A, 5.00%, 9/01/26 |  |  | 900 |  |  |  | 1,014,102 |
New Jersey Transportation Trust Fund Authority, RB: |  |  |  |  |  |  |  |
5.00%, 6/15/36 |  |  | 5,070 |  |  |  | 5,458,210 |
CAB, Transportation System, Series A, 0.00%, 12/15/38 (b) |  |  | 5,845 |  |  |  | 1,829,719 |
Transportation Program, Series AA, 5.25%, 6/15/33 |  |  | 1,660 |  |  |  | 1,862,520 |
Transportation Program, Series AA, 5.00%, 6/15/38 |  |  | 1,945 |  |  |  | 2,091,575 |
Transportation System, Series A, 5.50%, 6/15/41 |  |  | 3,000 |  |  |  | 3,385,230 |
Transportation System, Series AA, 5.50%, 6/15/39 |  |  | 3,785 |  |  |  | 4,291,017 |
Transportation System, Series B, 5.25%, 6/15/36 |  |  | 5,000 |  |  |  | 5,458,100 |
|  |  |  |  |  |  | 27,784,611 |

See Notes to Financial Statements.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 35

Schedule of Investments (continued) |  | BlackRock Municipal Income Quality Trust (BYM) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
New York — 2.2% |  |  |  |  |  |  |  |
City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-4, 5.50%, 1/15/33 |  | $ | 1,950 |  |  | $ | 2,253,303 |
City of New York New York Transitional Finance Authority, Refunding RB, Future Tax Secured, Series B, 5.00%, 11/01/32 |  |  | 1,650 |  |  |  | 1,915,221 |
Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012, Series A, 5.75%, 2/15/47 |  |  | 770 |  |  |  | 895,479 |
Metropolitan Transportation Authority, RB, Dedicated Tax Fund, Series A (NPFGC), 5.00%, 11/15/31 |  |  | 2,500 |  |  |  | 2,676,975 |
State of New York Dormitory Authority, ERB, Series B, 5.75%, 3/15/36 |  |  | 1,300 |  |  |  | 1,515,527 |
|  |  |  |  |  |  | 9,256,505 |
Ohio — 0.7% |  |  |  |  |  |  |  |
County of Lucas Ohio, Refunding RB, Promedica Healthcare, Series A, 6.50%, 11/15/37 |  |  | 610 |  |  |  | 765,123 |
State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1: |  |  |  |  |  |  |  |
5.25%, 2/15/32 |  |  | 780 |  |  |  | 907,132 |
5.25%, 2/15/33 |  |  | 1,095 |  |  |  | 1,270,102 |
|  |  |  |  |  |  | 2,942,357 |
Pennsylvania — 1.5% |  |  |  |  |  |  |  |
Pennsylvania Higher Educational Facilities Authority, Refunding RB, 5.25%, 9/01/50 |  |  | 3,750 |  |  |  | 4,195,950 |
Pennsylvania Turnpike Commission, RB: |  |  |  |  |  |  |  |
Series A, 5.00%, 12/01/38 |  |  | 695 |  |  |  | 789,770 |
Series C, 5.50%, 12/01/33 |  |  | 630 |  |  |  | 752,132 |
Subordinate, Special Motor License Fund, 6.00%, 12/01/36 |  |  | 625 |  |  |  | 744,988 |
|  |  |  |  |  |  | 6,482,840 |
South Carolina — 4.2% |  |  |  |  |  |  |  |
South Carolina Jobs EDA, Refunding RB, Palmetto Health, Series A (AGM), 6.50%, 8/01/39 |  |  | 260 |  |  |  | 318,971 |
South Carolina State Ports Authority, RB, 5.25%, 7/01/40 |  |  | 5,000 |  |  |  | 5,612,150 |
State of South Carolina Public Service Authority, RB, Santee Cooper: |  |  |  |  |  |  |  |
Series A, 5.50%, 12/01/54 |  |  | 6,960 |  |  |  | 8,082,439 |
Series E, 5.50%, 12/01/53 |  |  | 610 |  |  |  | 703,909 |
State of South Carolina Public Service Authority, Refunding RB, Santee Cooper, Series B, 5.00%, 12/01/38 |  |  | 2,360 |  |  |  | 2,649,454 |
|  |  |  |  |  |  | 17,366,923 |
Tennessee — 0.3% |  |  |  |  |  |  |  |
Memphis Center City Revenue Finance Corp., RB, Pyramid & Pinch District, Series B (AGM), 5.25%, 11/01/30 |  |  | 940 |  |  |  | 1,091,349 |
Texas — 21.2% |  |  |  |  |  |  |  |
Central Texas Turnpike System, Refunding RB, 2nd Tier, Series C, 5.00%, 8/15/34 |  |  | 1,625 |  |  |  | 1,804,741 |
City of San Antonio Texas Public Service Board, RB, Junior Lien, 5.00%, 2/01/38 |  |  | 615 |  |  |  | 693,333 |
Comal Texas ISD, GO, School Building (PSF-GTD), 5.00%, 2/01/16 (a) |  |  | 2,500 |  |  |  | 2,610,925 |
Coppell Texas ISD, GO, CAB, Refunding (PSF-GTD), 0.00%, 8/15/30 (b) |  |  | 10,030 |  |  |  | 6,299,442 |
County of Harris Texas, GO, Refunding (NPFGC) (b): |  |  |  |  |  |  |  |
0.00%, 8/15/25 |  |  | 7,485 |  |  |  | 5,843,914 |
0.00%, 8/15/28 |  |  | 10,915 |  |  |  | 7,646,831 |
County of Harris Texas Houston Sports Authority, Refunding RB (b): |  |  |  |  |  |  |  |
3rd Lien, Series A-3 (NPFGC), 0.00%, 11/15/38 |  |  | 16,890 |  |  |  | 4,731,227 |
Municipal Bonds |  | Par (000) |  |  | Value |
Texas (concluded) |  |  |  |  |  |  |  |
County of Harris Texas Houston Sports Authority, Refunding RB (b) (concluded): |  |  |  |  |  |  |  |
CAB, Junior Lien, Series H (NPFGC), 0.00%, 11/15/38 |  |  | 5,785 |  |  |  | 1,738,508 |
CAB, Junior Lien, Series H (NPFGC), 0.00%, 11/15/39 |  |  | 6,160 |  |  |  | 1,739,030 |
County of Midland Texas Fresh Water Supply District No. 1, RB, Series A (b): |  |  |  |  |  |  |  |
CAB, City of Midland Project, 0.00%, 9/15/36 |  |  | 2,340 |  |  |  | 924,300 |
0.00%, 9/15/34 |  |  | 5,000 |  |  |  | 2,230,200 |
Dallas-Fort Worth International Airport, Refunding ARB, Series F, 5.25%, 11/01/33 |  |  | 1,090 |  |  |  | 1,271,572 |
Leander Independent School District, GO, CAB, Refunding, Series D, 0.00%, 8/15/38 (b) |  |  | 3,775 |  |  |  | 1,380,857 |
Mansfield Texas ISD, GO, School Building (PSF-GTD), 5.00%, 2/15/33 |  |  | 2,980 |  |  |  | 3,236,280 |
North Texas Tollway Authority, RB: |  |  |  |  |  |  |  |
CAB, Special Project System, Series B, 0.00%, 9/01/37 (b) |  |  | 1,975 |  |  |  | 671,855 |
Convertible CAB, Series C, 0.00%, 9/01/45 (c) |  |  | 2,500 |  |  |  | 2,533,875 |
Special Projects System, Series A, 6.00%, 9/01/41 |  |  | 1,000 |  |  |  | 1,209,990 |
North Texas Tollway Authority, Refunding RB, 1st Tier System, Series A: |  |  |  |  |  |  |  |
6.00%, 1/01/28 |  |  | 625 |  |  |  | 731,712 |
(NPFGC), 5.75%, 1/01/40 |  |  | 23,050 |  |  |  | 25,739,935 |
Texas Municipal Gas Acquisition & Supply Corp. III, RB: |  |  |  |  |  |  |  |
5.00%, 12/15/31 |  |  | 2,105 |  |  |  | 2,329,393 |
5.00%, 12/15/32 |  |  | 3,600 |  |  |  | 3,957,912 |
Texas Transportation Commission, Refunding RB, Central Texas Turnpike System, 1st Tier, Series A, 5.00%, 8/15/41 |  |  | 3,160 |  |  |  | 3,499,700 |
Wylie Independent School District, GO, 0.00%, 8/15/40 (b)(d) |  |  | 15,300 |  |  |  | 5,489,946 |
|  |  |  |  |  |  | 88,315,478 |
Washington — 2.3% |  |  |  |  |  |  |  |
County of King Washington Sewer, Refunding RB (AGM), 5.00%, 1/01/16 (a) |  |  | 2,200 |  |  |  | 2,289,232 |
Washington Health Care Facilities Authority, RB: |  |  |  |  |  |  |  |
MultiCare Health System, Remarketing, Series B, 5.00%, 8/15/44 |  |  | 2,000 |  |  |  | 2,169,600 |
MultiCare Health System, Series C (AGC), 5.50%, 8/15/43 |  |  | 4,000 |  |  |  | 4,436,800 |
Providence Health & Services, Series A, 5.25%, 10/01/39 |  |  | 675 |  |  |  | 759,476 |
|  |  |  |  |  |  | 9,655,108 |
Wisconsin — 0.4% |  |  |  |  |  |  |  |
State of Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Senior Credit Group, Series E, 5.00%, 11/15/33 |  |  | 1,500 |  |  |  | 1,686,420 |
Total Municipal Bonds — 109.6% |  |  |  |  |  |  | 457,432,869 |
Municipal Bonds Transferred to Tender Option Bond Trusts (e) |  |  |  |  |  |
Arizona — 0.7% |  |  |  |  |  |  |  |
City of Phoenix Arizona Civic Improvement Corp., Refunding RB, Water System, Junior Lien, Series A, 5.00%, 7/01/34 |  |  | 1,300 |  |  |  | 1,469,299 |
Salt River Project Agricultural Improvement & Power District, RB, Electric System, Series A, 5.00%, 1/01/38 |  |  | 1,500 |  |  |  | 1,642,995 |
|  |  |  |  |  |  | 3,112,294 |

See Notes to Financial Statements.

36 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Schedule of Investments (continued) |  | BlackRock Municipal Income Quality Trust (BYM) (Percentages shown are based on Net Assets)

Municipal Bonds Transferred to Tender Option Bond Trusts (e) |  | Par (000) |  |  | Value |
California — 7.6% |  |  |  |  |  |  |  |
California State University, RB, Systemwide, Series A (AGM), 5.00%, 11/01/33 (f) |  | $ | 3,379 |  |  | $ | 3,751,531 |
California State University, Refunding RB, Systemwide, Series A (AGM), 5.00%, 11/01/32 |  |  | 8,000 |  |  |  | 8,689,440 |
County of San Diego California Water Authority, COP, Refunding, Series A (AGM), 5.00%, 5/01/33 |  |  | 4,870 |  |  |  | 5,393,233 |
Foothill-De Anza Community College District, GO, Election of 1999, Series C (NPFGC), 5.00%, 8/01/15 (a) |  |  | 7,500 |  |  |  | 7,656,000 |
Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/17 (a) |  |  | 5,000 |  |  |  | 5,528,750 |
San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33 |  |  | 449 |  |  |  | 518,618 |
|  |  |  |  |  |  | 31,537,572 |
District of Columbia — 0.3% |  |  |  |  |  |  |  |
District of Columbia, RB, Series A, 5.50%, 12/01/30 (f) |  |  | 1,080 |  |  |  | 1,272,686 |
Florida — 8.3% |  |  |  |  |  |  |  |
City of Tallahassee Florida, RB, Energy System (NPFGC): |  |  |  |  |  |  |  |
5.00%, 10/01/32 (f) |  |  | 3,000 |  |  |  | 3,266,970 |
5.00%, 10/01/37 |  |  | 5,000 |  |  |  | 5,444,950 |
County of Highlands Florida Health Facilities Authority, RB, Adventist, Series C, 5.25%, 11/15/36 |  |  | 1,800 |  |  |  | 1,944,342 |
County of Miami-Dade Florida, Refunding RB, Transit System Sales Surtax, 5.00%, 7/01/42 |  |  | 1,950 |  |  |  | 2,184,819 |
County of Miami-Dade Florida Water & Sewer System (AGM), 5.00%, 10/01/39 |  |  | 10,101 |  |  |  | 11,552,266 |
County of Orange Florida School Board, COP, Series A (AGC), 5.50%, 8/01/34 |  |  | 6,096 |  |  |  | 6,888,564 |
State of Florida Board of Education, GO, Series D, 5.00%, 6/01/37 (f) |  |  | 2,999 |  |  |  | 3,284,925 |
|  |  |  |  |  |  | 34,566,836 |
Illinois — 9.5% |  |  |  |  |  |  |  |
City of Chicago Illinois, RB, Motor Fuel Tax Project, Series A (AGC), 5.00%, 1/01/38 |  |  | 8,310 |  |  |  | 8,971,809 |
Illinois Finance Authority, RB, The Carle Foundation, Series A (AGM), 6.00%, 8/15/41 |  |  | 2,400 |  |  |  | 2,863,896 |
Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project, Series A, 5.00%, 6/15/42 |  |  | 11,748 |  |  |  | 12,771,402 |
State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/34 (f) |  |  | 1,400 |  |  |  | 1,576,105 |
State of Illinois Toll Highway Authority, RB: |  |  |  |  |  |  |  |
Senior Priority, Series B, 5.50%, 1/01/33 |  |  | 4,499 |  |  |  | 4,973,294 |
Series A, 5.00%, 1/01/38 |  |  | 7,714 |  |  |  | 8,566,666 |
|  |  |  |  |  |  | 39,723,172 |
Nevada — 1.7% |  |  |  |  |  |  |  |
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/39 (f) |  |  | 4,197 |  |  |  | 4,871,269 |
County of Clark Nevada Water Reclamation District, GO, Limited Tax, Series B, 5.75%, 7/01/34 |  |  | 2,024 |  |  |  | 2,388,202 |
|  |  |  |  |  |  | 7,259,471 |
New Jersey — 0.5% |  |  |  |  |  |  |  |
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 6/15/36 (f) |  |  | 2,000 |  |  |  | 2,183,702 |
New York — 10.8% |  |  |  |  |  |  |  |
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Fiscal 2013, Series CC, 5.00%, 6/15/47 |  |  | 6,240 |  |  |  | 7,062,947 |
Municipal Bonds Transferred to Tender Option Bond Trusts (e) |  | Par (000) |  |  | Value |
New York (concluded) |  |  |  |  |  |  |  |
City of New York New York Water & Sewer System, Refunding RB, 2nd General Resolution, Fiscal 2014, Series DD, 5.00%, 6/15/35 |  |  | 1,845 |  |  |  | 2,131,104 |
County of Erie New York Industrial Development Agency, RB, City of Buffalo School District Project, Series A (AGM), 5.75%, 5/01/28 |  |  | 4,494 |  |  |  | 4,945,461 |
Metropolitan Transportation Authority, RB, 5.25%, 11/15/44 |  |  | 3,850 |  |  |  | 4,476,510 |
New York City Transitional Finance Authority, Refunding RB, Future Tax Secured, Series B, 5.00%, 11/01/30 |  |  | 12,500 |  |  |  | 14,679,875 |
New York State Urban Development Corp., RB, Personal Income Tax, General Purpose, Series A-1, 5.00%, 3/15/43 |  |  | 5,720 |  |  |  | 6,497,634 |
Triborough Bridge & Tunnel Authority, RB, General, Series A-2, 5.25%, 11/15/34 (f) |  |  | 4,500 |  |  |  | 5,129,865 |
|  |  |  |  |  |  | 44,923,396 |
Ohio — 0.2% |  |  |  |  |  |  |  |
State of Ohio, RB, Cleveland Clinic Health Obligated Group, Series B, 5.50%, 1/01/34 |  |  | 620 |  |  |  | 700,879 |
South Carolina — 0.2% |  |  |  |  |  |  |  |
State of South Carolina Public Service Authority, Refunding RB, Santee Cooper, Series A, 5.50%, 1/01/38 (f) |  |  | 600 |  |  |  | 682,806 |
Texas — 1.7% |  |  |  |  |  |  |  |
City of Houston Texas, Refunding RB, Airport System, Senior Lien, Series A, 5.50%, 7/01/34 |  |  | 4,167 |  |  |  | 4,725,070 |
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Baylor Health Care System Project, Series A, 5.00%, 11/15/38 |  |  | 719 |  |  |  | 804,634 |
North East Texas ISD, GO, School Building, Series A (PSF-GTD), 5.00%, 8/01/37 (f) |  |  | 1,500 |  |  |  | 1,632,960 |
|  |  |  |  |  |  | 7,162,664 |
Utah — 1.4% |  |  |  |  |  |  |  |
Utah Transit Authority, RB, Series A (AGM), 5.00%, 6/15/18 (a) |  |  | 5,000 |  |  |  | 5,669,900 |
Virginia — 0.1% |  |  |  |  |  |  |  |
County of Fairfax Virginia IDA, Refunding RB, Health Care, Inova Health System, Series A, 5.50%, 5/15/35 |  |  | 400 |  |  |  | 456,370 |
Washington — 1.8% |  |  |  |  |  |  |  |
Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/32 |  |  | 3,494 |  |  |  | 3,831,494 |
Washington Health Care Facilities Authority, Refunding RB, Seattle Children’s Hospital, 5.00%, 10/01/38 |  |  | 3,210 |  |  |  | 3,804,010 |
|  |  |  |  |  |  | 7,635,504 |
Wisconsin — 1.6% |  |  |  |  |  |  |  |
Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Obligated Group: |  |  |  |  |  |  |  |
Froedtert & Community Health Inc., Series A, 5.00%, 4/01/42 |  |  | 3,520 |  |  |  | 3,903,997 |
Series C, 5.25%, 4/01/39 |  |  | 2,500 |  |  |  | 2,756,700 |
|  |  |  |  |  |  | 6,660,697 |
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 46.4% |  |  |  | 193,547,949 |
Total Long-Term Investments (Cost — $589,406,835) — 156.0% |  |  |  | 650,980,818 |

See Notes to Financial Statements.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 37

Schedule of Investments (continued) |  | BlackRock Municipal Income Quality Trust (BYM) (Percentages shown are based on Net Assets)

Short-Term Securities |  | Shares |  |  | Value |
FFI Institutional Tax-Exempt Fund, 0.03% (g)(h) |  |  | 5,809,865 |  |  | $ | 5,809,865 |
Total Short-Term Securities (Cost — $5,809,865) — 1.4% |  |  |  | 5,809,865 |
Total Investments (Cost — $595,216,700) — 157.4% |  |  |  | 656,790,683 |
Other Assets Less Liabilities — 0.9% |  |  |  | 3,675,035 |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (25.4%) |  |  |  | (106,070,537 | )
VMTP Shares, at Liquidation Value — (32.9%) |  |  |  | (137,200,000 | )
Net Assets Applicable to Common Shares — 100.0% |  |  | $ | 417,195,181 |

Notes to Schedule of Investments

(a) |  | U.S. government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

(b) |  | Zero-coupon bond.

(c) |  | Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.

(d) |  | When-issued security. Unsettled when-issued transactions were as follows:

Counterparty |  | Value |  |  | Unrealized Appreciation |
Hutchinson, Shockey, Erley & Co. |  | $ | 5,489,946 |  |  | $ | 15,147 |

(e) |  | Represent bonds transferred to a TOB Trust. In exchange for which the Trust received cash and residual certificates. These bonds serve as collateral in a secured borrowing. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOB Trusts.

(f) |  | All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB Trust Certificates and proceeds received from the sale of the security contributed to the TOB Trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from February 1, 2016 to December 1, 2029, is $14,459,523.

(g) |  | During the six months ended February 28, 2015, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the 1940 Act were as follows:

Affiliate |  | Shares Held at August 31, 2014 |  |  | Net Activity |  |  | Shares Held at February 28, 2015 |  |  | Income |
FFI Institutional Tax-Exempt Fund |  |  | 4,098,719 |  |  |  | 1,711,146 |  |  |  | 5,809,865 |  |  | $ | 729 |

(h) |  | Represents the current yield as of report date.

Ÿ |  | As of February 28, 2015, financial futures contracts outstanding were as follows:

Contracts Short |  |  | Issue |  | Exchange |  | Expiration |  | Notional Value |  |  | Unrealized Depreciation |
| (165 | ) |  | 5-Year U.S. Treasury Note |  | Chicago Board of Trade |  | June 2015 |  | $ | 19,681,406 |  |  | $ | (38,911 | )
| (363 | ) |  | 10-Year U.S. Treasury Note |  | Chicago Board of Trade |  | June 2015 |  |  | 46,390,266 |  |  |  | (200,398 | )
| Total |  |  |  |  |  |  |  |  |  |  |  |  | $ | (239,309 | )

Ÿ |  | Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows:

| Ÿ |  | Level 1 — unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access

| Ÿ |  | Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

| Ÿ |  | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

See Notes to Financial Statements.

38 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Schedule of Investments (concluded) |  | BlackRock Municipal Income Quality Trust (BYM)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements.

As of February 28, 2015, the following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-Term Investments 1 |  |  | — |  |  | $ | 650,980,818 |  |  |  | — |  |  | $ | 650,980,818 |
Short-Term Securities |  | $ | 5,809,865 |  |  |  | — |  |  |  | — |  |  |  | 5,809,865 |
Total |  | $ | 5,809,865 |  |  | $ | 650,980,818 |  |  |  | — |  |  | $ | 656,790,683 |
1 See above Schedule of Investments for values in each state or political subdivision. |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Derivative Financial Instruments 2 |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | (239,309 | ) |  |  | — |  |  |  | — |  |  | $ | (239,309 | )
2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of February 28, 2015, such assets and/or liabilities are categorized within the disclosure hierarchy as follows: |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash pledged for financial futures contracts |  | $ | 641,000 |  |  |  | — |  |  |  | — |  |  | $ | 641,000 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOB Trust Certificates |  |  | — |  |  | $ | (106,051,858 | ) |  |  | — |  |  |  | (106,051,858 | )
VMTP Shares |  |  | — |  |  |  | (137,200,000 | ) |  |  | — |  |  |  | (137,200,000 | )
Total |  | $ | 641,000 |  |  | $ | (243,251,858 | ) |  |  | — |  |  | $ | (242,610,858 | )
During the six months ended February 28, 2015, there were no transfers between levels. |

See Notes to Financial Statements.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 39

Schedule of Investments February 28, 2015 (Unaudited) |  | BlackRock Municipal Income Trust II (BLE) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
Alabama — 2.0% |  |  |  |  |  |  |  |
County of Jefferson Alabama, RB, Limited Obligation School, Series A, 5.25%, 1/01/19 |  | $ | 1,620 |  |  | $ | 1,626,075 |
County of Jefferson Alabama Sewer, Refunding RB: |  |  |  |  |  |  |  |
Senior Lien, Series A (AGM), 5.00%, 10/01/44 |  |  | 540 |  |  |  | 591,586 |
Senior Lien, Series A (AGM), 5.25%, 10/01/48 |  |  | 1,320 |  |  |  | 1,462,837 |
Sub-Lien, Series D, 7.00%, 10/01/51 |  |  | 3,220 |  |  |  | 3,849,092 |
|  |  |  |  |  |  | 7,529,590 |
Arizona — 2.1% |  |  |  |  |  |  |  |
Salt Verde Financial Corp., RB, Senior: |  |  |  |  |  |  |  |
5.00%, 12/01/32 |  |  | 5,635 |  |  |  | 6,470,670 |
5.00%, 12/01/37 |  |  | 1,000 |  |  |  | 1,153,350 |
|  |  |  |  |  |  | 7,624,020 |
California — 10.9% |  |  |  |  |  |  |  |
Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, Series F-1, 5.63%, 4/01/19 (a) |  |  | 2,480 |  |  |  | 2,944,504 |
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 8/15/42 |  |  | 3,500 |  |  |  | 4,210,990 |
California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 7/01/33 |  |  | 1,365 |  |  |  | 1,567,320 |
California HFA, RB, S/F Housing, Home Mortgage, Series K, AMT, 5.50%, 2/01/42 |  |  | 395 |  |  |  | 403,090 |
California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A: |  |  |  |  |  |  |  |
5.25%, 8/15/39 |  |  | 160 |  |  |  | 176,293 |
5.25%, 8/15/49 |  |  | 395 |  |  |  | 432,766 |
California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45 (b) |  |  | 1,655 |  |  |  | 1,787,764 |
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A: |  |  |  |  |  |  |  |
5.25%, 5/15/39 |  |  | 860 |  |  |  | 981,226 |
Senior, 5.00%, 5/15/40 |  |  | 6,500 |  |  |  | 7,418,190 |
City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/38 |  |  | 380 |  |  |  | 449,232 |
County of Stanislaus California Tobacco Securitization Agency, RB, CAB, Sub-Series C, 0.00%, 6/01/55 (c) |  |  | 9,710 |  |  |  | 127,589 |
San Marcos Unified School District, GO, CAB, Election of 2010, Series B (c): |  |  |  |  |  |  |  |
0.00%, 8/01/33 |  |  | 3,000 |  |  |  | 1,435,560 |
0.00%, 8/01/43 |  |  | 2,500 |  |  |  | 737,650 |
State of California, GO, Various Purposes: |  |  |  |  |  |  |  |
6.00%, 3/01/33 |  |  | 1,760 |  |  |  | 2,140,001 |
6.50%, 4/01/33 |  |  | 10,645 |  |  |  | 12,992,755 |
State of California Public Works Board, LRB, Various Capital Projects: |  |  |  |  |  |  |  |
Series I, 5.00%, 11/01/38 |  |  | 825 |  |  |  | 938,050 |
Sub-Series I-1, 6.38%, 11/01/34 |  |  | 1,280 |  |  |  | 1,572,646 |
|  |  |  |  |  |  | 40,315,626 |
Colorado — 1.4% |  |  |  |  |  |  |  |
Colorado Health Facilities Authority, Refunding RB: |  |  |  |  |  |  |  |
Catholic Health Initiative, Series A, 5.50%, 7/01/34 |  |  | 2,330 |  |  |  | 2,676,564 |
Evangelical Lutheran Good Samaritan Society Project, 5.00%, 12/01/42 |  |  | 925 |  |  |  | 986,337 |
Park Creek Metropolitan District, Refunding RB, Senior Limited Property Tax, 5.50%, 12/01/37 |  |  | 1,375 |  |  |  | 1,395,776 |
|  |  |  |  |  |  | 5,058,677 |
Municipal Bonds |  | Par (000) |  |  | Value |
Connecticut — 0.3% |  |  |  |  |  |  |  |
Connecticut State Health & Educational Facility Authority, RB, Ascension Health Senior Credit, Series A, 5.00%, 11/15/40 |  |  | 1,005 |  |  |  | 1,123,691 |
Delaware — 1.7% |  |  |  |  |  |  |  |
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40 |  |  | 1,240 |  |  |  | 1,436,540 |
Delaware State EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45 |  |  | 4,275 |  |  |  | 4,683,476 |
|  |  |  |  |  |  | 6,120,016 |
District of Columbia — 5.2% |  |  |  |  |  |  |  |
District of Columbia, Refunding RB, Kipp Charter School, Series A, 6.00%, 7/01/43 |  |  | 820 |  |  |  | 958,785 |
District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed: |  |  |  |  |  |  |  |
6.50%, 5/15/33 |  |  | 3,250 |  |  |  | 4,113,070 |
6.75%, 5/15/40 |  |  | 11,500 |  |  |  | 11,501,035 |
Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, 1st Senior Lien, Series A: |  |  |  |  |  |  |  |
5.00%, 10/01/39 |  |  | 550 |  |  |  | 606,292 |
5.25%, 10/01/44 |  |  | 2,000 |  |  |  | 2,259,060 |
|  |  |  |  |  |  | 19,438,242 |
Florida — 5.2% |  |  |  |  |  |  |  |
City of Atlantic Beach Florida, RB, Health Care Facilities, Fleet Landing Project, Series B, 5.63%, 11/15/43 |  |  | 1,445 |  |  |  | 1,602,808 |
City of Jacksonville Florida Port Authority, Refunding RB, AMT, 5.00%, 11/01/38 |  |  | 1,665 |  |  |  | 1,787,710 |
County of Miami-Dade Florida Aviation, Refunding ARB, Miami International Airport: |  |  |  |  |  |  |  |
Series A, AMT (AGC), 5.25%, 10/01/38 |  |  | 2,855 |  |  |  | 3,169,193 |
Series A-1, 5.38%, 10/01/41 |  |  | 1,255 |  |  |  | 1,441,330 |
County of Miami-Dade Florida Water & Sewer System, RB (AGM), 5.00%, 10/01/39 |  |  | 5,000 |  |  |  | 5,718,200 |
Mid-Bay Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/40 |  |  | 3,300 |  |  |  | 4,016,463 |
Stevens Plantation Community Development District, Special Assessment, Series A, 7.10%, 5/01/35 (d)(e) |  |  | 1,895 |  |  |  | 1,413,784 |
|  |  |  |  |  |  | 19,149,488 |
Georgia — 1.5% |  |  |  |  |  |  |  |
City of Atlanta Georgia Water & Wastewater, Refunding RB, 5.00%, 11/01/40 (f) |  |  | 3,370 |  |  |  | 3,849,180 |
County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 8/15/54 |  |  | 555 |  |  |  | 646,697 |
DeKalb Private Hospital Authority, Refunding RB, Children’s Healthcare, 5.25%, 11/15/39 |  |  | 915 |  |  |  | 1,045,525 |
|  |  |  |  |  |  | 5,541,402 |
Hawaii — 0.5% |  |  |  |  |  |  |  |
State of Hawaii Harbor System, RB, Series A, 5.25%, 7/01/30 |  |  | 1,480 |  |  |  | 1,692,380 |
Illinois — 22.1% |  |  |  |  |  |  |  |
City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien: |  |  |  |  |  |  |  |
Series A, 5.75%, 1/01/39 |  |  | 5,000 |  |  |  | 5,787,150 |
Series C, 6.50%, 1/01/41 |  |  | 6,430 |  |  |  | 7,843,635 |
City of Chicago Illinois, GO, Project, Series A: |  |  |  |  |  |  |  |
5.00%, 1/01/33 |  |  | 1,510 |  |  |  | 1,537,044 |
5.00%, 1/01/34 |  |  | 3,050 |  |  |  | 3,102,826 |
City of Chicago Illinois, GO, Refunding, Project, Series A, 5.25%, 1/01/32 |  |  | 4,940 |  |  |  | 5,156,273 |

See Notes to Financial Statements.

40 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Schedule of Investments (continued) |  | BlackRock Municipal Income Trust II (BLE) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
Illinois (concluded) |  |  |  |  |  |  |  |
City of Chicago Illinois, Refunding RB, Sales Tax, Series A, 5.25%, 1/01/38 |  | $ | 895 |  |  | $ | 970,278 |
City of Chicago Illinois Board of Education, GO, Series A, 5.25%, 12/01/41 |  |  | 3,485 |  |  |  | 3,602,828 |
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40 |  |  | 1,150 |  |  |  | 1,304,215 |
City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien Project, 5.00%, 11/01/42 |  |  | 3,130 |  |  |  | 3,425,910 |
County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38 |  |  | 845 |  |  |  | 977,733 |
Illinois Finance Authority, Refunding RB: |  |  |  |  |  |  |  |
Ascension Health, Series A, 5.00%, 11/15/37 |  |  | 1,060 |  |  |  | 1,190,104 |
Central Dupage Health, Series B, 5.50%, 11/01/39 |  |  | 1,750 |  |  |  | 2,004,485 |
Friendship Village Schaumburg, Series A, 5.63%, 2/15/37 |  |  | 455 |  |  |  | 455,064 |
Illinois Sports Facilities Authority, RB, State Tax Supported (AMBAC): |  |  |  |  |  |  |  |
5.50%, 6/15/15 (a) |  |  | 3,055 |  |  |  | 3,133,513 |
5.50%, 6/15/30 |  |  | 7,445 |  |  |  | 7,624,350 |
Illinois State Toll Highway Authority, RB, Senior: |  |  |  |  |  |  |  |
Series A, 5.00%, 1/01/38 |  |  | 2,520 |  |  |  | 2,828,650 |
Series C, 5.00%, 1/01/36 |  |  | 3,515 |  |  |  | 3,997,785 |
Series C, 5.00%, 1/01/37 |  |  | 3,005 |  |  |  | 3,412,358 |
Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project: |  |  |  |  |  |  |  |
Series B (AGM), 5.00%, 6/15/50 |  |  | 6,725 |  |  |  | 7,130,114 |
Series B-2, 5.00%, 6/15/50 |  |  | 2,725 |  |  |  | 2,888,554 |
Railsplitter Tobacco Settlement Authority, RB: |  |  |  |  |  |  |  |
5.50%, 6/01/23 |  |  | 520 |  |  |  | 611,666 |
6.00%, 6/01/28 |  |  | 1,255 |  |  |  | 1,472,567 |
State of Illinois, GO: |  |  |  |  |  |  |  |
5.00%, 2/01/39 |  |  | 1,640 |  |  |  | 1,734,284 |
Series A, 5.00%, 4/01/35 |  |  | 2,500 |  |  |  | 2,650,025 |
Series A, 5.00%, 4/01/38 |  |  | 3,885 |  |  |  | 4,093,547 |
State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/34 |  |  | 685 |  |  |  | 771,399 |
University of Illinois, RB, Auxiliary Facilities System, Series A: |  |  |  |  |  |  |  |
5.00%, 4/01/39 |  |  | 860 |  |  |  | 964,696 |
5.00%, 4/01/44 |  |  | 1,050 |  |  |  | 1,175,213 |
|  |  |  |  |  |  | 81,846,266 |
Indiana — 4.4% |  |  |  |  |  |  |  |
Carmel Redevelopment Authority, Refunding RB, Multipurpose, Series A, 4.00%, 2/01/38 |  |  | 675 |  |  |  | 704,531 |
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT: |  |  |  |  |  |  |  |
6.75%, 1/01/34 |  |  | 845 |  |  |  | 1,033,697 |
7.00%, 1/01/44 |  |  | 3,535 |  |  |  | 4,350,843 |
Indiana Finance Authority, RB, Series A: |  |  |  |  |  |  |  |
CWA Authority Project, 1st Lien, 5.25%, 10/01/38 |  |  | 3,510 |  |  |  | 4,040,993 |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/44 |  |  | 485 |  |  |  | 519,095 |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 7/01/48 |  |  | 1,610 |  |  |  | 1,720,832 |
Sisters of St. Francis Health Services, 5.25%, 11/01/39 |  |  | 915 |  |  |  | 1,020,692 |
Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39 |  |  | 1,200 |  |  |  | 1,389,756 |
Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 1/15/40 |  |  | 1,380 |  |  |  | 1,543,654 |
|  |  |  |  |  |  | 16,324,093 |
Municipal Bonds |  | Par (000) |  |  | Value |
Iowa — 2.4% |  |  |  |  |  |  |  |
Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project: |  |  |  |  |  |  |  |
5.00%, 12/01/19 |  |  | 1,040 |  |  |  | 1,105,468 |
5.50%, 12/01/22 |  |  | 2,550 |  |  |  | 2,694,942 |
5.25%, 12/01/25 |  |  | 500 |  |  |  | 545,780 |
Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, Senior Series A-1, AMT, 5.15%, 12/01/22 |  |  | 1,585 |  |  |  | 1,694,777 |
Iowa Tobacco Settlement Authority, Refunding RB, Asset-Backed, Series C, 5.63%, 6/01/46 |  |  | 3,095 |  |  |  | 2,749,412 |
|  |  |  |  |  |  | 8,790,379 |
Kentucky — 0.6% |  |  |  |  |  |  |  |
Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45 |  |  | 1,060 |  |  |  | 1,194,758 |
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 0.00%, 7/01/43 (g) |  |  | 1,280 |  |  |  | 903,360 |
|  |  |  |  |  |  | 2,098,118 |
Louisiana — 2.7% |  |  |  |  |  |  |  |
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35 |  |  | 3,650 |  |  |  | 4,381,788 |
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A: |  |  |  |  |  |  |  |
5.50%, 5/15/30 |  |  | 1,100 |  |  |  | 1,227,941 |
5.25%, 5/15/31 |  |  | 935 |  |  |  | 1,038,617 |
5.25%, 5/15/32 |  |  | 1,195 |  |  |  | 1,342,272 |
5.25%, 5/15/33 |  |  | 1,300 |  |  |  | 1,454,024 |
5.25%, 5/15/35 |  |  | 545 |  |  |  | 607,005 |
|  |  |  |  |  |  | 10,051,647 |
Maryland — 1.2% |  |  |  |  |  |  |  |
Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 6/01/35 |  |  | 475 |  |  |  | 514,055 |
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25 |  |  | 1,240 |  |  |  | 1,382,488 |
Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project, 6.25%, 1/01/41 |  |  | 2,400 |  |  |  | 2,716,176 |
|  |  |  |  |  |  | 4,612,719 |
Massachusetts — 0.7% |  |  |  |  |  |  |  |
Massachusetts Development Finance Agency, Refunding RB, Covanta Energy Project, Series C, AMT, 5.25%, 11/01/42 (b) |  |  | 1,530 |  |  |  | 1,585,493 |
Massachusetts Health & Educational Facilities Authority, Refunding RB, Partners Healthcare System, Series J1, 5.00%, 7/01/39 |  |  | 955 |  |  |  | 1,079,370 |
|  |  |  |  |  |  | 2,664,863 |
Michigan — 2.8% |  |  |  |  |  |  |  |
City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 7/01/39 |  |  | 4,825 |  |  |  | 5,189,384 |
Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital, 5.50%, 5/15/36 |  |  | 1,500 |  |  |  | 1,698,345 |
Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 7/01/44 |  |  | 940 |  |  |  | 993,138 |
Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, Series A, 5.25%, 11/15/46 |  |  | 2,305 |  |  |  | 2,417,277 |
|  |  |  |  |  |  | 10,298,144 |

See Notes to Financial Statements.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 41

Schedule of Investments (continued) |  | BlackRock Municipal Income Trust II (BLE) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
Missouri — 2.1% |  |  |  |  |  |  |  |
370/Missouri Bottom Road/Taussig Road Transportation Development District, RB, 7.20%, 5/01/33 |  | $ | 6,000 |  |  | $ | 6,011,820 |
Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/44 |  |  | 275 |  |  |  | 308,723 |
State of Missouri Health & Educational Facilities Authority, RB, Senior Living Facilities, Lutheran Senior Services, 5.50%, 2/01/42 |  |  | 1,135 |  |  |  | 1,237,967 |
State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 5/01/43 |  |  | 265 |  |  |  | 293,257 |
|  |  |  |  |  |  | 7,851,767 |
Multi-State — 3.7% |  |  |  |  |  |  |  |
Centerline Equity Issuer Trust (b)(h): |  |  |  |  |  |  |  |
Series A-4-1, 5.75%, 5/15/15 |  |  | 1,000 |  |  |  | 1,008,390 |
Series A-4-2, 6.00%, 5/15/19 |  |  | 3,500 |  |  |  | 4,012,715 |
Series B-3-1, 6.00%, 5/15/15 |  |  | 5,000 |  |  |  | 5,042,150 |
Series B-3-2, 6.30%, 5/15/19 |  |  | 3,000 |  |  |  | 3,471,330 |
|  |  |  |  |  |  | 13,534,585 |
Nebraska — 2.3% |  |  |  |  |  |  |  |
Central Plains Energy Project Nebraska, RB, Gas Project No. 3: |  |  |  |  |  |  |  |
5.25%, 9/01/37 |  |  | 895 |  |  |  | 1,000,171 |
5.00%, 9/01/42 |  |  | 1,570 |  |  |  | 1,722,180 |
County of Hall Nebraska School District No. 2, GO, Grand Island Public Schools, 5.00%, 12/15/39 |  |  | 2,275 |  |  |  | 2,610,858 |
County of Lancaster Nebraska Hospital Authority No. 1, Refunding RB, Immanuel Obligation Group, Health Facilities, 5.63%, 1/01/40 |  |  | 1,245 |  |  |  | 1,383,569 |
County of Sarpy Nebraska Hospital Authority No. 1, Refunding RB, Immanuel Obligation Group, 5.63%, 1/01/40 |  |  | 1,635 |  |  |  | 1,816,976 |
|  |  |  |  |  |  | 8,533,754 |
Nevada — 0.7% |  |  |  |  |  |  |  |
County of Clark Nevada, Refunding RB, Alexander Dawson School Nevada Project, 5.00%, 5/15/29 |  |  | 2,465 |  |  |  | 2,578,489 |
New Jersey — 6.5% |  |  |  |  |  |  |  |
New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT: |  |  |  |  |  |  |  |
5.13%, 9/15/23 |  |  | 2,130 |  |  |  | 2,322,509 |
5.25%, 9/15/29 |  |  | 2,130 |  |  |  | 2,326,599 |
New Jersey EDA, Refunding RB, Special Assessment, Kapkowski Road Landfill Project, 6.50%, 4/01/28 |  |  | 7,475 |  |  |  | 9,365,129 |
New Jersey State Turnpike Authority, RB, Series A, 5.00%, 1/01/43 |  |  | 2,160 |  |  |  | 2,396,174 |
New Jersey Transportation Trust Fund Authority, RB: |  |  |  |  |  |  |  |
Transportation Program, Series AA, 5.00%, 6/15/44 |  |  | 3,760 |  |  |  | 4,031,284 |
Transportation System, Series B, 5.25%, 6/15/36 |  |  | 2,690 |  |  |  | 2,936,458 |
Rutgers - The State University of New Jersey, Refunding RB, Series L, 5.00%, 5/01/43 |  |  | 570 |  |  |  | 644,602 |
|  |  |  |  |  |  | 24,022,755 |
New York — 10.5% |  |  |  |  |  |  |  |
City of New York New York Industrial Development Agency, ARB, American Airlines, Inc., JFK International Airport, AMT, 7.75%, 8/01/31 (i) |  |  | 6,700 |  |  |  | 7,281,024 |
City of New York New York Transitional Finance Authority, RB, Future Tax Secured Bonds, Fiscal 2012, Sub-Series E-1, 5.00%, 2/01/42 |  |  | 2,680 |  |  |  | 3,029,070 |
County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44 |  |  | 901 |  |  |  | 1,009,021 |
Municipal Bonds |  | Par (000) |  |  | Value |
New York (concluded) |  |  |  |  |  |  |  |
Metropolitan Transportation Authority, RB, Series B: |  |  |  |  |  |  |  |
5.25%, 11/15/38 |  |  | 2,555 |  |  |  | 2,972,308 |
5.25%, 11/15/39 |  |  | 910 |  |  |  | 1,057,047 |
New York Counties Tobacco Trust IV, Refunding RB, Settlement Pass Through Turbo, Series A, 6.25%, 6/01/41 (b) |  |  | 2,000 |  |  |  | 2,035,640 |
New York Liberty Development Corp., Refunding RB: |  |  |  |  |  |  |  |
2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49 |  |  | 1,335 |  |  |  | 1,531,659 |
3 World Trade Center Project, Class 1, 5.00%, 11/15/44 (b) |  |  | 5,300 |  |  |  | 5,570,300 |
3 World Trade Center Project, Class 2, 5.15%, 11/15/34 (b) |  |  | 365 |  |  |  | 401,274 |
3 World Trade Center Project, Class 2, 5.38%, 11/15/40 (b) |  |  | 910 |  |  |  | 1,016,861 |
New York State Dormitory Authority, RB, Series F, 5.00%, 3/15/35 |  |  | 3,625 |  |  |  | 3,633,845 |
New York State Dormitory Authority, Refunding RB, General Purpose, Series A, 5.00%, 6/15/31 |  |  | 1,930 |  |  |  | 2,252,078 |
Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42 (b) |  |  | 1,145 |  |  |  | 1,190,892 |
Port Authority of New York & New Jersey, ARB, JFK International Air Terminal LLC Project, Series 8: |  |  |  |  |  |  |  |
6.00%, 12/01/42 |  |  | 1,635 |  |  |  | 1,924,820 |
Special Project, 6.00%, 12/01/36 |  |  | 1,410 |  |  |  | 1,664,068 |
Westchester Tobacco Asset Securitization, Refunding RB, 5.13%, 6/01/45 |  |  | 2,500 |  |  |  | 2,324,150 |
|  |  |  |  |  |  | 38,894,057 |
North Carolina — 4.1% |  |  |  |  |  |  |  |
County of Gaston North Carolina Industrial Facilities & Pollution Control Financing Authority, RB, Exempt Facilities, National Gypsum Co. Project, AMT, 5.75%, 8/01/35 |  |  | 6,500 |  |  |  | 6,512,610 |
North Carolina Capital Facilities Finance Agency, Refunding RB, Solid Waste Disposal Facility, Duke Energy Carolinas Project, Series B, 4.63%, 11/01/40 |  |  | 4,465 |  |  |  | 4,762,101 |
North Carolina Medical Care Commission, RB, Health Care Facilities, Duke University Health System, Series A, 5.00%, 6/01/42 |  |  | 1,525 |  |  |  | 1,722,320 |
North Carolina Medical Care Commission, Refunding RB: |  |  |  |  |  |  |  |
1st Mortgage, Aldersgate, 6.25%, 7/01/35 |  |  | 1,530 |  |  |  | 1,669,964 |
1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 3/01/41 |  |  | 625 |  |  |  | 710,163 |
|  |  |  |  |  |  | 15,377,158 |
Ohio — 2.1% |  |  |  |  |  |  |  |
County of Allen Ohio Hospital Facilities, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 6/01/38 |  |  | 3,405 |  |  |  | 3,865,595 |
County of Franklin Ohio, RB, Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 7/01/40 |  |  | 710 |  |  |  | 785,636 |
County of Montgomery Ohio, Refunding RB, Catholic Health, Series A, 5.00%, 5/01/39 |  |  | 3,025 |  |  |  | 3,293,015 |
|  |  |  |  |  |  | 7,944,246 |
Pennsylvania — 2.3% |  |  |  |  |  |  |  |
Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A, 5.00%, 5/01/42 |  |  | 2,500 |  |  |  | 2,704,750 |

See Notes to Financial Statements.

42 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Schedule of Investments (continued) |  | BlackRock Municipal Income Trust II (BLE) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
Pennsylvania (concluded) |  |  |  |  |  |  |  |
City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 7/01/42 |  | $ | 1,320 |  |  | $ | 1,411,912 |
Pennsylvania Economic Development Financing Authority, RB: |  |  |  |  |  |  |  |
Aqua Pennsylvania, Inc. Project, Series B, 5.00%, 11/15/40 |  |  | 2,065 |  |  |  | 2,344,332 |
Rapid Bridge Pennsylvania, AMT, 5.00%, 6/30/42 (f) |  |  | 630 |  |  |  | 689,970 |
Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44 |  |  | 1,190 |  |  |  | 1,345,914 |
|  |  |  |  |  |  | 8,496,878 |
South Carolina — 2.4% |  |  |  |  |  |  |  |
South Carolina State Ports Authority, RB, 5.25%, 7/01/40 |  |  | 3,595 |  |  |  | 4,035,136 |
State of South Carolina Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 12/01/54 |  |  | 4,170 |  |  |  | 4,842,496 |
|  |  |  |  |  |  | 8,877,632 |
Tennessee — 0.4% |  |  |  |  |  |  |  |
City of Chattanooga Tennessee Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/45 |  |  | 1,470 |  |  |  | 1,656,881 |
Texas — 14.4% |  |  |  |  |  |  |  |
Brazos River Authority, RB, TXU Electric, Series A, AMT, 8.25%, 10/01/30 (d)(e) |  |  | 2,400 |  |  |  | 114,000 |
Central Texas Regional Mobility Authority, Refunding RB: |  |  |  |  |  |  |  |
Senior Lien, 6.25%, 1/01/46 |  |  | 2,350 |  |  |  | 2,741,439 |
Sub-Lien, 5.00%, 1/01/33 |  |  | 390 |  |  |  | 425,892 |
City of Austin Texas Airport System, RB, AMT, 5.00%, 11/15/39 |  |  | 665 |  |  |  | 745,944 |
City of Dallas Texas Waterworks & Sewer System, Refunding RB, 5.00%, 10/01/35 |  |  | 1,650 |  |  |  | 1,908,836 |
City of Houston Texas Airport System, Refunding ARB: |  |  |  |  |  |  |  |
Senior Lien, Series A, 5.50%, 7/01/39 |  |  | 1,675 |  |  |  | 1,891,862 |
United Airlines, Inc. Terminal E Project, AMT, 5.00%, 7/01/29 |  |  | 460 |  |  |  | 494,804 |
City of Houston Texas Utility System, Refunding RB, Combined 1st Lien, Series A (AGC), 6.00%, 11/15/35 |  |  | 9,145 |  |  |  | 10,937,877 |
County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 1/01/48 |  |  | 485 |  |  |  | 561,926 |
County of Harris Texas-Houston Sports Authority, Refunding RB, 3rd Lien, Series A-3 (NPFGC), 0.00%, 11/15/36 (c) |  |  | 25,375 |  |  |  | 8,054,025 |
County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Projects, Series A, 0.00%, 9/15/37 (c) |  |  | 6,055 |  |  |  | 2,261,724 |
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45 |  |  | 4,410 |  |  |  | 5,314,050 |
North Texas Tollway Authority, Refunding RB, 2nd Tier System, Series F, 6.13%, 1/01/16 (a) |  |  | 6,790 |  |  |  | 7,119,722 |
San Antonio Energy Acquisition Public Facility Corp., RB, Gas Supply, 5.50%, 8/01/24 |  |  | 3,600 |  |  |  | 4,327,992 |
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien: |  |  |  |  |  |  |  |
LBJ Infrastructure Group LLC, LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40 |  |  | 3,000 |  |  |  | 3,625,440 |
NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39 |  |  | 2,250 |  |  |  | 2,674,687 |
|  |  |  |  |  |  | 53,200,220 |
Municipal Bonds |  | Par (000) |  |  | Value |
Utah — 0.6% |  |  |  |  |  |  |  |
Utah State Charter School Finance Authority, RB, Ogden Preparatory Academy, Series A: |  |  |  |  |  |  |  |
3.25%, 10/15/36 |  |  | 1,035 |  |  |  | 929,182 |
3.25%, 10/15/42 |  |  | 1,660 |  |  |  | 1,445,030 |
|  |  |  |  |  |  | 2,374,212 |
Virginia — 1.5% |  |  |  |  |  |  |  |
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT: |  |  |  |  |  |  |  |
5.25%, 1/01/32 |  |  | 1,755 |  |  |  | 1,935,572 |
6.00%, 1/01/37 |  |  | 3,180 |  |  |  | 3,695,255 |
|  |  |  |  |  |  | 5,630,827 |
Washington — 2.3% |  |  |  |  |  |  |  |
City of Bellingham Washington Water & Sewer, RB, 5.00%, 8/01/36 |  |  | 5,050 |  |  |  | 5,693,774 |
Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 1/01/45 |  |  | 2,445 |  |  |  | 2,911,775 |
|  |  |  |  |  |  | 8,605,549 |
Wisconsin — 0.3% |  |  |  |  |  |  |  |
State of Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Senior Credit Group, Series E, 5.00%, 11/15/33 |  |  | 910 |  |  |  | 1,023,095 |
Wyoming — 1.5% |  |  |  |  |  |  |  |
County of Sweetwater Wyoming, Refunding RB, Idaho Power Co. Project, Remarketing, 5.25%, 7/15/26 |  |  | 3,355 |  |  |  | 3,869,154 |
Wyoming Municipal Power Agency, Inc., RB, Series A: |  |  |  |  |  |  |  |
5.50%, 1/01/33 |  |  | 800 |  |  |  | 885,456 |
5.50%, 1/01/38 |  |  | 750 |  |  |  | 830,115 |
|  |  |  |  |  |  | 5,584,725 |
Total Municipal Bonds — 125.4% |  |  |  |  |  |  | 464,466,191 |
Municipal Bonds Transferred to Tender Option Bond Trusts (j) |
Alabama — 0.7% |  |  |  |  |  |  |  |
City of Birmingham Alabama Special Care Facilities Financing Authority, Refunding RB, Ascension Health, Senior Credit, Series C-2, 5.00%, 11/15/36 |  |  | 2,519 |  |  |  | 2,703,092 |
California — 5.4% |  |  |  |  |  |  |  |
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (k) |  |  | 2,850 |  |  |  | 3,217,507 |
City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B, 5.00%, 11/01/39 |  |  | 10,335 |  |  |  | 11,802,880 |
Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/17 (a) |  |  | 2,530 |  |  |  | 2,797,548 |
San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33 |  |  | 1,840 |  |  |  | 2,126,334 |
|  |  |  |  |  |  | 19,944,269 |
Colorado — 2.0% |  |  |  |  |  |  |  |
Colorado Health Facilities Authority, RB, Catholic Health (AGM): |  |  |  |  |  |  |  |
Series C-3, 5.10%, 10/01/41 |  |  | 4,230 |  |  |  | 4,531,176 |
Series C-7, 5.00%, 9/01/36 |  |  | 2,710 |  |  |  | 2,906,204 |
|  |  |  |  |  |  | 7,437,380 |

See Notes to Financial Statements.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 43

Schedule of Investments (continued) |  | BlackRock Municipal Income Trust II (BLE) (Percentages shown are based on Net Assets)

Municipal Bonds Transferred to Tender Option Bond Trusts (j) |  | Par (000) |  |  | Value |
Connecticut — 3.0% |  |  |  |  |  |  |  |
Connecticut State Health & Educational Facility Authority, RB, Yale University: |  |  |  |  |  |  |  |
Series T-1, 4.70%, 7/01/29 |  | $ | 5,179 |  |  | $ | 5,605,306 |
Series X-3, 4.85%, 7/01/37 |  |  | 5,143 |  |  |  | 5,563,070 |
|  |  |  |  |  |  | 11,168,376 |
Georgia — 1.4% |  |  |  |  |  |  |  |
Private Colleges & Universities Authority, Refunding RB, Emory University, Series C, 5.00%, 9/01/38 |  |  | 4,638 |  |  |  | 5,170,470 |
Massachusetts — 0.7% |  |  |  |  |  |  |  |
Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/41 |  |  | 2,461 |  |  |  | 2,800,221 |
New Hampshire — 0.7% |  |  |  |  |  |  |  |
New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (k) |  |  | 2,219 |  |  |  | 2,539,488 |
New York — 9.8% |  |  |  |  |  |  |  |
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution: |  |  |  |  |  |  |  |
Series FF-2, 5.50%, 6/15/40 |  |  | 1,710 |  |  |  | 1,977,124 |
Series HH, 5.00%, 6/15/31 (k) |  |  | 9,149 |  |  |  | 10,461,241 |
Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (k) |  |  | 1,750 |  |  |  | 2,035,017 |
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated, 5.25%, 12/15/43 |  |  | 11,670 |  |  |  | 13,467,763 |
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (k) |  |  | 7,040 |  |  |  | 8,238,349 |
|  |  |  |  |  |  | 36,179,494 |
Texas — 3.0% |  |  |  |  |  |  |  |
City of San Antonio Texas Public Service Board, RB, Electric & Gas Systems, Junior Lien, 5.00%, 2/01/43 |  |  | 2,660 |  |  |  | 2,988,909 |
County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41 |  |  | 3,720 |  |  |  | 4,201,033 |
Municipal Bonds Transferred to Tender Option Bond Trusts (j) |  | Par (000) |  |  | Value |
Texas (concluded) |  |  |  |  |  |  |  |
University of Texas, Refunding RB, Financing System, Series B, 5.00%, 8/15/43 |  |  | 3,346 |  |  |  | 3,838,504 |
|  |  |  |  |  |  | 11,028,446 |
Utah — 1.2% |  |  |  |  |  |  |  |
City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 8/15/41 |  |  | 3,957 |  |  |  | 4,387,425 |
Virginia — 1.8% |  |  |  |  |  |  |  |
University of Virginia, Refunding RB, General, 5.00%, 6/01/40 |  |  | 5,909 |  |  |  | 6,587,511 |
Washington — 3.4% |  |  |  |  |  |  |  |
Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/32 |  |  | 3,029 |  |  |  | 3,321,724 |
State of Washington, GO, Various Purposes, Series E, 5.00%, 2/01/34 |  |  | 8,113 |  |  |  | 9,167,516 |
|  |  |  |  |  |  | 12,489,240 |
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 33.1% |  |  |  | 122,435,412 |
Total Long-Term Investments (Cost — $535,404,623) — 158.5% |  |  |  | 586,901,603 |
Short-Term Securities |  | Shares |  |  |  |
FFI Institutional Tax-Exempt Fund, 0.03% (l)(m) |  |  | 872,717 |  |  |  | 872,717 |
Total Short-Term Securities (Cost — $872,717) — 0.2% |  |  |  |  |  |  | 872,717 |
Total Investments (Cost — $536,277,340) — 158.7% |  |  |  | 587,774,320 |
Other Assets Less Liabilities — 0.8% |  |  |  | 2,551,956 |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (18.6%) |  |  |  | (68,702,137 | )
VMTP Shares, at Liquidation Value — (40.9%) |  |  |  | (151,300,000 | )
Net Assets Applicable to Common Shares — 100.0% |  |  | $ | 370,324,139 |

Notes to Schedule of Investments

(a) |  | U.S. government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

(b) |  | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(c) |  | Zero-coupon bond.

(d) |  | Non-income producing security.

(e) |  | Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.

(f) |  | When-issued security. Unsettled when-issued transactions were as follows:

Counterparty |  | Value |  |  | Unrealized Appreciation |
J.P. Morgan Securities LLC |  | $ | 689,970 |  |  | $ | 5,040 |
Pershing LLC |  | $ | 3,849,180 |  |  | $ | 14,087 |

(g) |  | Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.

(h) |  | Represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity.

(i) |  | Variable rate security. Rate shown is as of report date.

(j) |  | Represent bonds transferred to a TOB Trust. In exchange for which the Trust received cash and residual certificates. These bonds serve as collateral in a secured borrowing. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOB Trusts.

See Notes to Financial Statements.

44 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Schedule of Investments (concluded) |  | BlackRock Municipal Income Trust II (BLE)

(k) |  | All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB Trust Certificates and proceeds received from the sale of the security contributed to the TOB Trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from October 1, 2016 to November 15, 2019, is $14,496,557.

(l) |  | During the six months ended February 28, 2015, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the 1940 Act were as follows:

Affiliate |  | Shares Held at August 31, 2014 |  |  | Net Activity |  |  | Shares Held at February 28, 2015 |  |  | Income |
FFI Institutional Tax-Exempt Fund |  |  | 7,457,326 |  |  |  | (6,584,609 | ) |  |  | 872,717 |  |  | $ | 907 |

(m) |  | Represents the current yield as of report date.

Ÿ |  | As of February 28, 2015, financial futures contracts outstanding were as follows:

Contracts Short |  |  | Issue |  | Exchange |  | Expiration |  | Notional Value |  |  | Unrealized Appreciation |
| (188 | ) |  | 10-Year U.S. Treasury Note |  | Chicago Board of Trade |  | March 2015 |  | $ | 24,143,313 |  |  | $ | 23,195 |

Ÿ |  | Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows:

| Ÿ |  | Level 1 — unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access

| Ÿ |  | Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

| Ÿ |  | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements.

As of February 28, 2015, the following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-Term Investments1 |  |  | — |  |  | $ | 586,901,603 |  |  | — |  | $ | 586,901,603 |
Short-Term Securities |  | $ | 872,717 |  |  |  | — |  |  | — |  |  | 872,717 |
Total |  | $ | 872,717 |  |  | $ | 586,901,603 |  |  | — |  | $ | 587,774,320 |
1 See above Schedule of Investments for values in each state or political subdivision. |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  | Total |
Derivative Financial Instruments2 |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | 23,195 |  |  |  | — |  |  | — |  | $ | 23,195 |
2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of February 28, 2015, such assets and/or liabilities are categorized within the disclosure hierarchy as follows: |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash pledged for financial futures contracts |  | $ | 267,000 |  |  |  | — |  |  | — |  | $ | 267,000 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOB Trust Certificates |  |  | — |  |  | $ | (68,691,599 | ) |  | — |  |  | (68,691,599 | )
VMTP Shares |  |  | — |  |  |  | (151,300,000 | ) |  | — |  |  | (151,300,000 | )
Total |  | $ | 267,000 |  |  | $ | (219,991,599 | ) |  | — |  | $ | (219,724,599 | )
During the six months ended February 28, 2015, there were no transfers between levels. |

See Notes to Financial Statements.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 45

Schedule of Investments February 28, 2015 (Unaudited) |  | BlackRock MuniHoldings Investment Quality Fund (MFL) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
Alabama — 4.4% |  |  |  |  |  |  |  |
City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC): |  |  |  |  |  |  |  |
6.13%, 6/01/34 |  | $ | 4,980 |  |  | $ | 5,872,964 |
6.00%, 6/01/39 |  |  | 10,995 |  |  |  | 12,865,909 |
City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A, 5.38%, 12/01/35 |  |  | 1,745 |  |  |  | 1,951,521 |
Mobile Board of Water & Sewer Commissioners, RB (NPFGC), 5.00%, 1/01/16 (a) |  |  | 5,500 |  |  |  | 5,723,080 |
|  |  |  |  |  |  | 26,413,474 |
California — 23.0% |  |  |  |  |  |  |  |
California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38 |  |  | 8,920 |  |  |  | 10,103,684 |
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 8/15/42 |  |  | 5,370 |  |  |  | 6,460,862 |
City & County of San Francisco California Airports Commission, Refunding ARB, 2nd Series A, AMT: |  |  |  |  |  |  |  |
5.50%, 5/01/28 |  |  | 3,330 |  |  |  | 3,968,661 |
5.25%, 5/01/33 |  |  | 2,600 |  |  |  | 2,984,748 |
City of Manteca California Financing Authority, RB, Manteca Sewer (AGC): |  |  |  |  |  |  |  |
5.63%, 12/01/33 |  |  | 2,450 |  |  |  | 2,876,398 |
5.75%, 12/01/36 |  |  | 3,285 |  |  |  | 3,849,133 |
City of San Jose California, Refunding ARB, Series A-1, AMT, 5.75%, 3/01/34 |  |  | 4,450 |  |  |  | 5,161,866 |
County of Sacramento California, ARB, Senior Series A (AGC), 5.50%, 7/01/41 |  |  | 5,600 |  |  |  | 6,332,872 |
Kern Community College District, GO, Safety, Repair & Improvement, Election of 2002, Series C, 5.50%, 11/01/33 |  |  | 4,365 |  |  |  | 5,244,853 |
Los Angeles California Unified School District, GO, Election of 2002, Series D, 5.25%, 7/01/25 |  |  | 3,485 |  |  |  | 4,073,686 |
Los Angeles Community College District California, GO: |  |  |  |  |  |  |  |
Election of 2001, Series A (NPFGC), 5.00%, 8/01/17 (a) |  |  | 10,000 |  |  |  | 11,057,500 |
Election of 2008, Series C, 5.25%, 8/01/39 |  |  | 3,375 |  |  |  | 3,944,025 |
Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38 |  |  | 5,000 |  |  |  | 5,610,200 |
Los Angeles Municipal Improvement Corp., Refunding LRB, Real Property, Series B (AGC), 5.50%, 4/01/39 |  |  | 2,980 |  |  |  | 3,416,153 |
Redondo Beach Unified School District, GO, Election of 2008, Series E, 5.50%, 8/01/34 |  |  | 4,110 |  |  |  | 4,857,075 |
San Diego Public Facilities Financing Authority Water, Refunding RB, Series B (AGC), 5.38%, 8/01/34 |  |  | 4,690 |  |  |  | 5,428,440 |
State of California, GO, Refunding, Various Purposes, 5.00%, 11/01/43 |  |  | 2,985 |  |  |  | 3,418,392 |
State of California, GO, Various Purposes (AGC), 5.50%, 11/01/39 |  |  | 15,000 |  |  |  | 17,692,950 |
State of California Public Works Board, LRB, Various Capital Projects, Series I: |  |  |  |  |  |  |  |
5.50%, 11/01/30 |  |  | 4,500 |  |  |  | 5,472,675 |
5.50%, 11/01/31 |  |  | 2,615 |  |  |  | 3,166,713 |
5.50%, 11/01/33 |  |  | 2,000 |  |  |  | 2,425,560 |
State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 9/01/33 |  |  | 2,240 |  |  |  | 2,627,117 |
Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 8/01/40 |  |  | 1,685 |  |  |  | 2,027,122 |
University of California, Refunding RB, The Regents of Medical Center, Series J, 5.25%, 5/15/38 |  |  | 12,250 |  |  |  | 14,537,565 |
|  |  |  |  |  |  | 136,738,250 |
Municipal Bonds |  | Par (000) |  |  | Value |
Colorado — 2.1% |  |  |  |  |  |  |  |
City & County of Denver Colorado Airport System, ARB, Series A, AMT: |  |  |  |  |  |  |  |
5.50%, 11/15/28 |  | $ | 2,700 |  |  | $ | 3,179,115 |
5.50%, 11/15/30 |  |  | 1,040 |  |  |  | 1,215,469 |
5.50%, 11/15/31 |  |  | 1,250 |  |  |  | 1,457,800 |
Colorado Health Facilities Authority, RB, Hospital, NCMC, Inc. Project, Series B (AGM), 6.00%, 5/15/26 |  |  | 5,925 |  |  |  | 6,759,418 |
|  |  |  |  |  |  | 12,611,802 |
Florida — 9.4% |  |  |  |  |  |  |  |
City of Jacksonville Florida, Refunding RB, Series A, 5.25%, 10/01/33 |  |  | 1,250 |  |  |  | 1,459,588 |
County of Hillsborough Florida Aviation Authority, Refunding ARB, Tampa International Airport, Series A, AMT: |  |  |  |  |  |  |  |
5.50%, 10/01/29 |  |  | 5,360 |  |  |  | 6,235,985 |
5.25%, 10/01/30 |  |  | 3,255 |  |  |  | 3,705,622 |
County of Lee Florida, Refunding ARB, Series A, AMT, 5.38%, 10/01/32 |  |  | 7,100 |  |  |  | 7,870,847 |
County of Manatee Florida Housing Finance Authority, RB, S/F Housing, Series A, AMT (Ginnie Mae, Fannie Mae & Freddie Mac), 5.90%, 9/01/40 |  |  | 350 |  |  |  | 356,762 |
County of Miami-Dade Florida, Refunding RB, Water & Sewer System, Series B, 5.25%, 10/01/29 |  |  | 2,870 |  |  |  | 3,394,091 |
County of Miami-Dade Florida, RB, Seaport Department: |  |  |  |  |  |  |  |
Series A, 5.38%, 10/01/33 |  |  | 3,145 |  |  |  | 3,591,842 |
Series B, AMT, 6.25%, 10/01/38 |  |  | 1,405 |  |  |  | 1,747,427 |
Series B, AMT, 6.00%, 10/01/42 |  |  | 1,885 |  |  |  | 2,300,963 |
County of Miami-Dade Florida Aviation, Refunding ARB, AMT, Series A: |  |  |  |  |  |  |  |
Miami International Airport (AGM), 5.50%, 10/01/41 |  |  | 3,500 |  |  |  | 3,942,540 |
5.00%, 10/01/31 |  |  | 5,465 |  |  |  | 6,107,793 |
Florida Housing Finance Corp., Refunding RB, S/F Housing, Homeowner Mortgage, Series 2, AMT (NPFGC), 5.90%, 7/01/29 |  |  | 3,255 |  |  |  | 3,276,125 |
Osceola County, RB, Series A (b): |  |  |  |  |  |  |  |
5.00%, 10/01/40 |  |  | 2,165 |  |  |  | 2,441,059 |
5.00%, 10/01/44 |  |  | 4,970 |  |  |  | 5,585,733 |
Reedy Creek Improvement District, GO, Series A, 5.25%, 6/01/32 |  |  | 3,225 |  |  |  | 3,754,867 |
|  |  |  |  |  |  | 55,771,244 |
Georgia — 0.7% |  |  |  |  |  |  |  |
City of Atlanta GA Water & Wastewater Revenue, 5.00%, 11/01/40 (b) |  |  | 3,710 |  |  |  | 4,237,525 |
Hawaii — 0.8% |
State of Hawaii, Department of Transportation, COP, AMT: |  |  |  |  |  |  |  |
5.25%, 8/01/25 |  |  | 1,350 |  |  |  | 1,596,010 |
5.25%, 8/01/26 |  |  | 2,500 |  |  |  | 2,934,225 |
|  |  |  |  |  |  | 4,530,235 |
Illinois — 28.1% |  |  |  |  |  |  |  |
Chicago Midway International Airport, Refunding ARB, 2nd Lien, Series A, AMT, 5.00%, 1/01/33 |  |  | 4,355 |  |  |  | 4,813,146 |
City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien: |  |  |  |  |  |  |  |
Series A, 5.75%, 1/01/39 |  |  | 7,395 |  |  |  | 8,559,195 |
Series C, 6.50%, 1/01/41 |  |  | 16,800 |  |  |  | 20,493,480 |
City of Chicago Illinois, GO, Refunding, Series A: |  |  |  |  |  |  |  |
Project, 5.25%, 1/01/33 |  |  | 2,640 |  |  |  | 2,745,864 |
5.25%, 1/01/29 |  |  | 3,135 |  |  |  | 3,316,548 |
City of Chicago Illinois, Refunding RB, Sales Tax, Series A, 5.25%, 1/01/38 |  |  | 2,445 |  |  |  | 2,650,649 |

See Notes to Financial Statements.

46 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Schedule of Investments (continued) |  | BlackRock MuniHoldings Investment Quality Fund (MFL) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
Illinois (concluded) |  |  |  |  |  |  |  |
City of Chicago Illinois Midway International Airport, Refunding ARB, 2nd Lien, Series A, AMT: |  |  |  |  |  |  |  |
5.50%, 1/01/30 |  | $ | 6,500 |  |  | $ | 7,539,350 |
5.50%, 1/01/32 |  |  | 6,275 |  |  |  | 7,226,666 |
City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A, 5.00%, 1/01/41 |  |  | 8,020 |  |  |  | 8,749,419 |
City of Chicago Illinois Transit Authority, RB: |  |  |  |  |  |  |  |
Federal Transit Administration, Section 5309, Series A (AGC), 6.00%, 6/01/26 |  |  | 6,315 |  |  |  | 7,325,147 |
Sales Tax Receipts, 5.25%, 12/01/36 |  |  | 1,960 |  |  |  | 2,234,400 |
Sales Tax Receipts, 5.25%, 12/01/40 |  |  | 10,960 |  |  |  | 12,429,736 |
Sales Tax Receipts, 5.00%, 12/01/44 |  |  | 2,500 |  |  |  | 2,840,900 |
Sales Tax Receipts, 5.00%, 12/01/44 |  |  | 8,420 |  |  |  | 9,568,151 |
City of Chicago Illinois Transit Authority, Refunding RB, Federal Transit Administration, Section 5309 (AGM), 5.00%, 6/01/28 |  |  | 7,735 |  |  |  | 8,456,753 |
County of Cook Illinois Community College District No. 508, GO, City College of Chicago: |  |  |  |  |  |  |  |
5.50%, 12/01/38 |  |  | 2,895 |  |  |  | 3,349,747 |
5.25%, 12/01/43 |  |  | 6,305 |  |  |  | 7,125,911 |
Illinois Finance Authority, RB: |  |  |  |  |  |  |  |
Carle Foundation, Series A, 6.00%, 8/15/41 |  |  | 4,000 |  |  |  | 4,773,160 |
University of Chicago, Series B, 5.50%, 7/01/18 (a) |  |  | 10,000 |  |  |  | 11,483,500 |
Railsplitter Tobacco Settlement Authority, RB: |  |  |  |  |  |  |  |
5.50%, 6/01/23 |  |  | 4,365 |  |  |  | 5,134,462 |
6.00%, 6/01/28 |  |  | 1,245 |  |  |  | 1,460,833 |
State of Illinois, GO: |  |  |  |  |  |  |  |
5.25%, 2/01/31 |  |  | 2,700 |  |  |  | 2,961,846 |
5.25%, 2/01/32 |  |  | 5,525 |  |  |  | 6,039,046 |
5.50%, 7/01/33 |  |  | 7,820 |  |  |  | 8,727,042 |
5.50%, 7/01/38 |  |  | 1,295 |  |  |  | 1,439,354 |
5.00%, 2/01/39 |  |  | 5,000 |  |  |  | 5,287,450 |
|  |  |  |  |  |  | 166,731,755 |
Indiana — 3.5% |  |  |  |  |  |  |  |
Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges, Series A, AMT, 5.00%, 7/01/40 |  |  | 1,240 |  |  |  | 1,332,640 |
Indiana Municipal Power Agency, Refunding RB, Series A: |  |  |  |  |  |  |  |
5.25%, 1/01/32 |  |  | 1,500 |  |  |  | 1,748,655 |
5.25%, 1/01/33 |  |  | 1,500 |  |  |  | 1,745,040 |
Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A (AGC), 5.50%, 1/01/38 |  |  | 14,105 |  |  |  | 16,079,841 |
|  |  |  |  |  |  | 20,906,176 |
Louisiana — 2.8% |  |  |  |  |  |  |  |
City of New Orleans Louisiana Aviation Board, RB, Series B, AMT, 5.00%, 1/01/45 (b) |  |  | 4,995 |  |  |  | 5,474,620 |
City of New Orleans Louisiana Aviation Board, Refunding GARB, Restructuring (AGC): |  |  |  |  |  |  |  |
Series A-1, 6.00%, 1/01/23 |  |  | 500 |  |  |  | 582,105 |
Series A-2, 6.00%, 1/01/23 |  |  | 720 |  |  |  | 834,725 |
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, 5.00%, 10/01/37 |  |  | 5,100 |  |  |  | 5,816,907 |
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.50%, 5/15/29 |  |  | 3,735 |  |  |  | 4,103,495 |
|  |  |  |  |  |  | 16,811,852 |
Municipal Bonds |  | Par (000) |  |  | Value |
Massachusetts — 0.5% |  |  |  |  |  |  |  |
Massachusetts Educational Financing Authority, RB, Education Loan, Issue I, AMT: |  |  |  |  |  |  |  |
5.00%, 1/01/26 |  |  | 820 |  |  |  | 920,917 |
5.00%, 1/01/27 |  |  | 2,000 |  |  |  | 2,235,560 |
|  |  |  |  |  |  | 3,156,477 |
Michigan — 3.5% |  |  |  |  |  |  |  |
City of Detroit Michigan Water Supply System, RB, 2nd Lien, Series B (AGM), 6.25%, 7/01/36 |  |  | 6,320 |  |  |  | 6,974,246 |
Hudsonville Public Schools, GO, School Building & Site (Q-SBLF), 5.25%, 5/01/41 |  |  | 6,015 |  |  |  | 6,697,402 |
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/18 (a) |  |  | 5,780 |  |  |  | 7,235,867 |
|  |  |  |  |  |  | 20,907,515 |
Minnesota — 2.0% |  |  |  |  |  |  |  |
City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38 |  |  | 9,900 |  |  |  | 11,614,482 |
Mississippi — 2.8% |  |  |  |  |  |  |  |
Mississippi Development Bank, RB, Jackson Water & Sewer System Project (AGM): |  |  |  |  |  |  |  |
6.88%, 12/01/40 |  |  | 6,405 |  |  |  | 8,372,040 |
Special Obligation, 6.75%, 12/01/31 |  |  | 3,775 |  |  |  | 4,974,355 |
Special Obligation, 6.75%, 12/01/33 |  |  | 2,350 |  |  |  | 3,082,659 |
|  |  |  |  |  |  | 16,429,054 |
Nevada — 5.3% |  |  |  |  |  |  |  |
County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A (AGM), 5.25%, 7/01/39 |  |  | 11,175 |  |  |  | 12,661,275 |
County of Clark Nevada, GO, Limited Tax, 5.00%, 6/01/38 |  |  | 11,245 |  |  |  | 12,396,713 |
County of Clark Nevada Water Reclamation District, GO, Series A, 5.25%, 7/01/34 |  |  | 5,850 |  |  |  | 6,696,261 |
|  |  |  |  |  |  | 31,754,249 |
New Jersey — 7.8% |  |  |  |  |  |  |  |
New Jersey EDA, RB: |  |  |  |  |  |  |  |
School Facilities Construction (AGC), 6.00%, 12/15/18 (a) |  |  | 4,280 |  |  |  | 5,069,788 |
School Facilities Construction (AGC), 6.00%, 12/15/34 |  |  | 70 |  |  |  | 81,325 |
School Facilities Construction, Series UU, 5.00%, 6/15/40 |  |  | 2,700 |  |  |  | 2,925,261 |
The Goethals Bridge Replacement Project, AMT, 5.38%, 1/01/43 |  |  | 7,000 |  |  |  | 7,771,260 |
The Goethals Bridge Replacement Project, AMT (AGM), 5.00%, 1/01/31 |  |  | 2,425 |  |  |  | 2,713,236 |
New Jersey Health Care Facilities Financing Authority, RB, Virtua Health, Series A (AGC), 5.50%, 7/01/38 |  |  | 6,500 |  |  |  | 7,323,550 |
New Jersey Higher Education Student Assistance Authority, Refunding RB, Series 1, AMT, 5.75%, 12/01/28 |  |  | 4,475 |  |  |  | 4,994,906 |
New Jersey Transportation Trust Fund Authority, RB, Transportation System: |  |  |  |  |  |  |  |
Series A, 5.50%, 6/15/41 |  |  | 5,410 |  |  |  | 6,104,698 |
Series AA, 5.50%, 6/15/39 |  |  | 8,175 |  |  |  | 9,267,916 |
|  |  |  |  |  |  | 46,251,940 |
New York — 8.3% |  |  |  |  |  |  |  |
City of New York New York Municipal Water Finance Authority, Refunding RB, 2nd General Resolution: |  |  |  |  |  |  |  |
Fiscal 2009, Series EE, 5.25%, 6/15/40 |  |  | 7,500 |  |  |  | 8,558,550 |
Water & Sewer System, Series EE, 5.38%, 6/15/43 |  |  | 3,475 |  |  |  | 4,100,639 |

See Notes to Financial Statements.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 47

Schedule of Investments (continued) |  | BlackRock MuniHoldings Investment Quality Fund (MFL) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
New York (concluded) |  |  |  |  |  |  |  |
City of New York New York Municipal Water Finance Authority, Refunding RB, 2nd General Resolution (concluded): |  |  |  |  |  |  |  |
Water & Sewer System, Series FF-2, 5.50%, 6/15/40 |  | $ | 4,000 |  |  | $ | 4,625,480 |
City of New York New York Transitional Finance Authority Building Aid, BARB, Fiscal 2009, Series S-4 (AGC), 5.50%, 1/15/29 |  |  | 4,000 |  |  |  | 4,623,640 |
Metropolitan Transportation Authority, RB: |  |  |  |  |  |  |  |
Series A, 5.25%, 11/15/38 |  |  | 4,000 |  |  |  | 4,620,000 |
Series A-1, 5.25%, 11/15/39 |  |  | 4,490 |  |  |  | 5,207,322 |
New York State Dormitory Authority, Refunding RB, Series C, 5.00%, 3/15/42 |  |  | 5,420 |  |  |  | 6,185,792 |
Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 166th Series, 5.25%, 7/15/36 |  |  | 10,000 |  |  |  | 11,413,300 |
|  |  |  |  |  |  | 49,334,723 |
Ohio — 1.4% |  |  |  |  |  |  |  |
State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1: |  |  |  |  |  |  |  |
5.25%, 2/15/31 |  |  | 5,145 |  |  |  | 6,007,456 |
5.25%, 2/15/32 |  |  | 2,250 |  |  |  | 2,616,728 |
|  |  |  |  |  |  | 8,624,184 |
Pennsylvania — 2.3% |  |  |  |  |  |  |  |
Pennsylvania Economic Development Financing Authority, RB, AMT (b): |  |  |  |  |  |  |  |
5.00%, 12/31/34 |  |  | 3,700 |  |  |  | 4,105,853 |
5.00%, 12/31/38 |  |  | 865 |  |  |  | 953,169 |
Pennsylvania Turnpike Commission, RB, Sub-Series A, 6.00%, 12/01/41 |  |  | 4,945 |  |  |  | 5,331,897 |
Township of Bristol Pennsylvania School District, GO, 5.25%, 6/01/37 |  |  | 3,000 |  |  |  | 3,462,030 |
|  |  |  |  |  |  | 13,852,949 |
South Carolina — 4.7% |  |  |  |  |  |  |  |
County of Charleston South Carolina, RB, Special Source, 5.25%, 12/01/38 |  |  | 6,735 |  |  |  | 7,911,133 |
County of Charleston South Carolina Airport District, ARB, Series A, AMT: |  |  |  |  |  |  |  |
5.25%, 7/01/25 |  |  | 4,490 |  |  |  | 5,290,657 |
5.50%, 7/01/38 |  |  | 3,000 |  |  |  | 3,430,800 |
6.00%, 7/01/38 |  |  | 5,270 |  |  |  | 6,224,344 |
5.50%, 7/01/41 |  |  | 4,170 |  |  |  | 4,775,276 |
|  |  |  |  |  |  | 27,632,210 |
Texas — 16.4% |  |  |  |  |  |  |  |
Central Texas Turnpike System, Refunding RB, Series C: |  |  |  |  |  |  |  |
5.00%, 8/15/37 |  |  | 1,820 |  |  |  | 2,012,083 |
5.00%, 8/15/42 |  |  | 1,400 |  |  |  | 1,539,524 |
City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 3/01/37 |  |  | 4,190 |  |  |  | 4,844,017 |
City of Houston Texas Utility System, Refunding RB, Combined 1st Lien, Series A (AGC): |  |  |  |  |  |  |  |
6.00%, 11/15/35 |  |  | 12,700 |  |  |  | 15,189,835 |
6.00%, 11/15/36 |  |  | 9,435 |  |  |  | 11,284,732 |
5.38%, 11/15/38 |  |  | 5,000 |  |  |  | 5,747,650 |
County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Christus Health, Series A (AGC): |  |  |  |  |  |  |  |
6.50%, 1/01/19 (a) |  |  | 320 |  |  |  | 383,661 |
6.50%, 7/01/37 |  |  | 1,450 |  |  |  | 1,683,233 |
Dallas Area Rapid Transit, Refunding RB, Senior Lien, 5.25%, 12/01/38 |  |  | 9,110 |  |  |  | 10,269,247 |
Dallas-Fort Worth International Airport, ARB, Joint Improvement, AMT: |  |  |  |  |  |  |  |
Series A, 5.00%, 11/01/38 |  |  | 5,580 |  |  |  | 6,043,196 |
Series H, 5.00%, 11/01/37 |  |  | 4,575 |  |  |  | 5,008,801 |
Municipal Bonds |  | Par (000) |  |  | Value |
Texas (concluded) |  |  |  |  |  |  |  |
Lower Colorado River Authority, Refunding RB, 5.50%, 5/15/33 |  |  | 3,735 |  |  |  | 4,419,289 |
North Texas Tollway Authority, Refunding RB, 1st Tier: |  |  |  |  |  |  |  |
(AGM), 6.00%, 1/01/43 |  |  | 5,555 |  |  |  | 6,559,511 |
Series K-1 (AGC), 5.75%, 1/01/38 |  |  | 12,150 |  |  |  | 13,880,889 |
Red River Education Financing Corp., RB, Texas Christian University Project, 5.25%, 3/15/38 |  |  | 7,170 |  |  |  | 8,310,460 |
|  |  |  |  |  |  | 97,176,128 |
Virginia — 1.2% |  |  |  |  |  |  |  |
City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 1/01/43 |  |  | 1,750 |  |  |  | 1,961,592 |
Virginia Public School Authority, RB, Fluvanna County School Financing, 6.50%, 12/01/18 (a) |  |  | 4,300 |  |  |  | 5,181,371 |
|  |  |  |  |  |  | 7,142,963 |
Washington — 1.5% |  |  |  |  |  |  |  |
City of Seattle Washington Municipal Light & Power, Refunding RB, Series A, 5.25%, 2/01/36 |  |  | 4,200 |  |  |  | 4,815,174 |
State of Washington, GO, Various Purposes, Series B, 5.25%, 2/01/36 |  |  | 3,290 |  |  |  | 3,858,874 |
|  |  |  |  |  |  | 8,674,048 |
Total Municipal Bonds — 132.5% |  |  |  |  |  |  | 787,303,235 |
Municipal Bonds Transferred to Tender Option Bond Trusts (c) |  |  |  |  |  |
California — 1.9% |  |  |  |  |  |  |  |
California State University, Refunding RB, Systemwide, Series A (AGM), 5.00%, 11/01/32 |  |  | 7,960 |  |  |  | 8,645,993 |
Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34 |  |  | 2,400 |  |  |  | 2,723,280 |
|  |  |  |  |  |  | 11,369,273 |
District of Columbia — 0.7% |  |  |  |  |  |  |  |
District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 10/01/35 (d) |  |  | 3,379 |  |  |  | 3,987,425 |
Florida — 2.2% |
County of Hillsborough Florida Aviation Authority, ARB, Tampa International Airport, Series A, AMT (AGC), 5.50%, 10/01/38 |  |  | 10,657 |  |  |  | 11,933,667 |
County of Lee Florida Housing Finance Authority, RB, S/F Housing, Multi-County Program, Series A-2, AMT (Ginnie Mae), 6.00%, 9/01/40 |  |  | 1,116 |  |  |  | 1,141,725 |
|  |  |  |  |  |  | 13,075,392 |
Indiana — 1.8% |
Indiana Health & Educational Facilities Financing Authority, Refunding RB, St. Francis, Series E (AGM), 5.25%, 5/15/41 |  |  | 9,850 |  |  |  | 10,622,043 |
Kentucky — 0.1% |
Kentucky State Property & Building Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/27 |  |  | 404 |  |  |  | 463,505 |
Nevada — 2.5% |
County of Clark Nevada Water Reclamation District, GO: |  |  |  |  |  |  |  |
Limited Tax, 6.00%, 7/01/38 |  |  | 8,000 |  |  |  | 9,239,440 |
Series B, 5.50%, 7/01/29 |  |  | 5,008 |  |  |  | 5,850,499 |
|  |  |  |  |  |  | 15,089,939 |

See Notes to Financial Statements.

48 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Schedule of Investments (continued) |  | BlackRock MuniHoldings Investment Quality Fund (MFL) (Percentages shown are based on Net Assets)

Municipal Bonds Transferred to Tender Option Bond Trusts (c) |  | Par (000) |  |  | Value |
New Jersey — 3.3% |
New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29 |  | $ | 7,402 |  |  | $ | 7,897,658 |
New Jersey Transportation Trust Fund Authority, RB, Transportation System: |  |  |  |  |  |  |  |
Series A (AMBAC), 5.00%, 12/15/32 |  |  | 8,000 |  |  |  | 8,782,160 |
Series B, 5.25%, 6/15/36 (d) |  |  | 2,961 |  |  |  | 3,231,878 |
|  |  |  |  |  |  | 19,911,696 |
New York — 10.8% |
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 6/15/40 |  |  | 4,994 |  |  |  | 5,775,284 |
City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.25%, 1/15/39 |  |  | 5,619 |  |  |  | 6,335,284 |
Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (d) |  |  | 9,249 |  |  |  | 10,756,520 |
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated, 5.25%, 12/15/43 |  |  | 13,950 |  |  |  | 16,098,997 |
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (d) |  |  | 8,200 |  |  |  | 9,595,804 |
New York State Dormitory Authority, ERB, Personal Income Tax, Series B, 5.25%, 3/15/38 |  |  | 13,500 |  |  |  | 15,388,245 |
|  |  |  |  |  |  | 63,950,134 |
Municipal Bonds Transferred to Tender Option Bond Trusts (c) |  | Par (000) |  |  | Value |
Texas — 4.3% |
City of San Antonio Texas Public Service Board, Refunding RB, Series A, 5.25%, 2/01/31 (d) |  |  | 12,027 |  |  |  | 13,698,793 |
North Texas Tollway Authority, RB, Special Projects System, Series A, 5.50%, 9/01/41 |  |  | 9,640 |  |  |  | 11,587,955 |
|  |  |  |  |  |  | 25,286,748 |
Utah — 1.2% |
City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 8/15/41 |  |  | 6,371 |  |  |  | 7,063,090 |
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 28.8% |  |  |  | 170,819,245 |
Total Long-Term Investments (Cost — $857,210,973) — 161.3% |  |  |  | 958,122,480 |
Short-Term Securities |  | Shares |  |  |  |
FFI Institutional Tax-Exempt Fund, 0.03% (e)(f) |  |  | 7,762,304 |  |  |  | 7,762,304 |
Total Short-Term Securities (Cost — $7,762,304) — 1.3% |  |  |  |  |  |  | 7,762,304 |
Total Investments (Cost — $864,973,277) — 162.6% |  |  |  | 965,884,784 |
Liabilities in Excess of Other Assets — (2.0)% |  |  |  | (11,728,376 | )
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (14.4)% |  |  |  | (85,646,441 | )
VRDP Shares, at Liquidation Value — (46.2)% |  |  |  | (274,600,000 | )
Net Assets Applicable to Common Shares — 100.0% |  |  | $ | 593,909,967 |

Notes to Schedule of Investments

(a) |  | U.S. government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

(b) |  | When-issued security. Unsettled when-issued transactions were as follows:

Counterparty |  | Value |  |  | Unrealized Appreciation (Depreciation) |
Citigroup Global Markets, Inc. |  | $ | 5,474,620 |  |  | $ | (5,195 | )
J.P. Morgan Securities LLC |  | $ | 5,059,022 |  |  | $ | 53,983 |
Pershing LLC |  | $ | 4,237,525 |  |  | $ | 15,508 |
Raymond James Financial |  | $ | 8,026,792 |  |  | $ | 44,131 |

(c) |  | Represent bonds transferred to a TOB Trust. In exchange for which the Trust received cash and residual certificates. These bonds serve as collateral in a secured borrowing. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOB Trusts.

(d) |  | All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB Trust Certificates and proceeds received from the sale of the security contributed to the TOB Trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from October 1, 2016 to November 15, 2019, is $22,519,158.

(e) |  | During the six months ended February 28, 2015, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the 1940 Act were as follows:

Affiliate |  | Shares Held at August 31, 2014 |  |  | Net Activity |  |  | Shares Held at February 28, 2015 |  |  | Income |
FFI Institutional Tax-Exempt Fund |  |  | 6,198,367 |  |  |  | 1,563,937 |  |  |  | 7,762,304 |  |  | $ | 788 |

(f) |  | Represents the current yield as of report date.

Ÿ |  | As of February 28, 2015, financial futures contracts outstanding were as follows:

Contracts Short |  |  | Issue |  | Exchange |  | Expiration |  | Notional Value |  |  | Unrealized Depreciation |
| (600 | ) |  | 10-Year U.S. Treasury Note |  | Chicago Board of Trade |  | June 2015 |  | $ | 76,678,125 |  |  | $ | (331,236 | )

See Notes to Financial Statements.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 49

Schedule of Investments (concluded) |  | BlackRock MuniHoldings Investment Quality Fund (MFL)

Ÿ |  | Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows:

| Ÿ |  | Level 1 — unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access

| Ÿ |  | Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

| Ÿ |  | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements.

As of February 28, 2015, the following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-Term Investments1 |  |  | — |  |  | $ | 958,122,480 |  |  | — |  | $ | 958,122,480 |
Short-Term Securities |  | $ | 7,762,304 |  |  |  | — |  |  | — |  |  | 7,762,304 |
Total |  | $ | 7,762,304 |  |  | $ | 958,122,480 |  |  | — |  | $ | 965,884,784 |
1 See above Schedule of Investments for values in each state or each political subdivision. |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  | Total |
Derivative Financial Instruments2 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | (331,236 | ) |  |  | — |  |  | — |  | $ | (331,236 | )
2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of February 28, 2015, such assets and/or liabilities are categorized within the disclosure hierarchy as follows: |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash pledged for financial futures contracts |  | $ | 851,001 |  |  |  | — |  |  | — |  | $ | 851,001 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOB Trust Certificates |  |  | — |  |  | $ | (85,627,593 | ) |  | — |  |  | (85,627,593 | )
VRDP Shares |  |  | — |  |  |  | (274,600,000 | ) |  | — |  |  | (274,600,000 | )
Total |  | $ | 851,001 |  |  | $ | (360,227,593 | ) |  | — |  | $ | (359,376,592 | )
During the six months ended February 28, 2015, there were no transfers between levels. |  |  |  |

See Notes to Financial Statements.

50 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Schedule of Investments February 28, 2015 (Unaudited) |  | BlackRock MuniVest Fund, Inc. (MVF) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
Alabama — 1.8% |  |  |  |  |  |  |  |
City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A: |  |  |  |  |  |  |  |
5.80%, 5/01/34 |  | $ | 1,850 |  |  | $ | 2,090,926 |
5.38%, 12/01/35 |  |  | 1,000 |  |  |  | 1,118,350 |
State of Alabama Docks Department, Refunding RB, 6.00%, 10/01/40 |  |  | 7,610 |  |  |  | 8,941,217 |
|  |  |  |  |  |  | 12,150,493 |
Alaska — 1.0% |  |  |  |  |  |  |  |
City of Anchorage Alaska Electric Revenue, Refunding RB, Series A, 5.00%, 12/01/41 |  |  | 5,000 |  |  |  | 5,664,000 |
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 5.00%, 6/01/46 |  |  | 1,250 |  |  |  | 1,006,362 |
|  |  |  |  |  |  | 6,670,362 |
Arizona — 2.4% |  |  |  |  |  |  |  |
City of Phoenix Arizona Civic Improvement Corp., Refunding RB, Junior Lien, Series A, 5.00%, 7/01/40 |  |  | 2,000 |  |  |  | 2,201,580 |
City of Phoenix Arizona IDA, RB, Candeo School, Inc. Project: |  |  |  |  |  |  |  |
6.63%, 7/01/33 |  |  | 2,245 |  |  |  | 2,530,811 |
6.88%, 7/01/44 |  |  | 3,440 |  |  |  | 3,925,143 |
County of Maricopa Arizona IDA, RB, Arizona Charter Schools Project, Series A, 6.75%, 7/01/29 |  |  | 3,430 |  |  |  | 3,248,965 |
County of Maricopa Arizona Pollution Control Corp., Refunding RB, Southern California Edison Co., Series A, 5.00%, 6/01/35 |  |  | 3,300 |  |  |  | 3,739,032 |
|  |  |  |  |  |  | 15,645,531 |
California — 7.1% |  |  |  |  |  |  |  |
California Health Facilities Financing Authority, RB: |  |  |  |  |  |  |  |
St. Joseph Health System, Series A, 5.75%, 7/01/39 |  |  | 5,000 |  |  |  | 5,809,200 |
Sutter Health, Series B, 6.00%, 8/15/42 |  |  | 5,600 |  |  |  | 6,737,584 |
California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/34 |  |  | 1,055 |  |  |  | 1,234,044 |
California HFA, RB, S/F Housing, Home Mortgage, Series K, AMT, 5.50%, 2/01/42 |  |  | 495 |  |  |  | 505,138 |
California Statewide Communities Development Authority, Refunding RB, Loma Linda University Medical Center, 5.50%, 12/01/54 |  |  | 5,000 |  |  |  | 5,524,200 |
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A, 5.25%, 5/15/39 |  |  | 1,200 |  |  |  | 1,369,152 |
Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/19 (a) |  |  | 9,585 |  |  |  | 11,662,453 |
Poway Unified School District, GO, Refunding, CAB, School Facilities Improvement District No. 2007-1, Election of 2008, Series B, 0.00%, 8/01/46 (b) |  |  | 10,000 |  |  |  | 2,689,600 |
State of California, GO, Various Purposes, 6.50%, 4/01/33 |  |  | 9,675 |  |  |  | 11,808,821 |
|  |  |  |  |  |  | 47,340,192 |
Colorado — 1.0% |  |  |  |  |  |  |  |
Colorado Health Facilities Authority, RB, Catholic Health Initiatives, Series D, 6.25%, 10/01/33 |  |  | 2,500 |  |  |  | 2,895,900 |
Colorado Health Facilities Authority, Refunding RB, Evangelical Lutheran, Series A, 5.25%, 6/01/34 |  |  | 3,000 |  |  |  | 3,011,400 |
Regional Transportation District, COP, Refunding, Series A, 5.38%, 6/01/31 |  |  | 385 |  |  |  | 444,779 |
|  |  |  |  |  |  | 6,352,079 |
Municipal Bonds |  | Par (000) |  |  | Value |
Delaware — 0.4% |  |  |  |  |  |  |  |
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40 |  |  | 2,500 |  |  |  | 2,896,250 |
District of Columbia — 0.2% |  |  |  |  |  |  |  |
Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, 1st Senior Lien, Series A: |  |  |  |  |  |  |  |
5.00%, 10/01/39 |  |  | 415 |  |  |  | 457,475 |
5.25%, 10/01/44 |  |  | 650 |  |  |  | 734,195 |
|  |  |  |  |  |  | 1,191,670 |
Florida — 7.2% |  |  |  |  |  |  |  |
County of Miami-Dade Florida, GO, Building Better Communities Program: |  |  |  |  |  |  |  |
Series B, 6.38%, 7/01/28 |  |  | 4,630 |  |  |  | 5,385,801 |
Series B-1, 5.63%, 7/01/38 |  |  | 5,000 |  |  |  | 5,679,950 |
County of Miami-Dade Florida, Refunding RB, Transit System Sales Surtax, 5.00%, 7/01/42 |  |  | 3,750 |  |  |  | 4,201,575 |
County of Miami-Dade Florida Aviation, Refunding ARB, Miami International Airport: |  |  |  |  |  |  |  |
Series A, AMT (AGC), 5.00%, 10/01/40 |  |  | 10,000 |  |  |  | 10,613,200 |
Series A-1, 5.38%, 10/01/41 |  |  | 10,290 |  |  |  | 11,817,756 |
County of Miami-Dade Florida Expressway Authority, RB, Toll System, Series A (AGM), 5.00%, 7/01/35 |  |  | 8,900 |  |  |  | 10,010,809 |
|  |  |  |  |  |  | 47,709,091 |
Georgia — 1.6% |  |  |  |  |  |  |  |
City of Atlanta Georgia Department of Aviation, Refunding GARB, Series B, AMT, 5.00%, 1/01/29 |  |  | 1,070 |  |  |  | 1,182,692 |
County of DeKalb Georgia Hospital Authority, Refunding RB, DeKalb Medical Center, Inc. Project, 6.13%, 9/01/40 |  |  | 3,570 |  |  |  | 3,940,638 |
DeKalb Private Hospital Authority, Refunding RB, Children’s Healthcare, 5.25%, 11/15/39 |  |  | 3,335 |  |  |  | 3,810,738 |
Municipal Electric Authority of Georgia, Refunding RB, Series W, 6.60%, 1/01/18 |  |  | 1,790 |  |  |  | 1,926,183 |
|  |  |  |  |  |  | 10,860,251 |
Hawaii — 0.9% |  |  |  |  |  |  |  |
State of Hawaii Harbor System, RB, Series A, 5.50%, 7/01/35 |  |  | 5,000 |  |  |  | 5,767,550 |
Illinois — 12.7% |  |  |  |  |  |  |  |
City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien, Series B-2, AMT (NPFGC), 6.00%, 1/01/27 |  |  | 605 |  |  |  | 607,874 |
City of Chicago Illinois, GO, Refunding, Series A, 5.00%, 1/01/36 |  |  | 15,000 |  |  |  | 15,278,100 |
City of Chicago Illinois, Refunding RB, Sales Tax Receipts, Series A, 5.00%, 1/01/41 |  |  | 4,640 |  |  |  | 4,938,027 |
City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A, 5.00%, 1/01/41 |  |  | 1,740 |  |  |  | 1,898,253 |
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/36 |  |  | 2,110 |  |  |  | 2,405,400 |
City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien (AGM), 5.25%, 11/01/33 |  |  | 1,330 |  |  |  | 1,466,644 |
County of Cook Illinois Community College District No. 508, GO, University & College Improvements, 5.25%, 12/01/31 |  |  | 5,000 |  |  |  | 5,756,850 |
Illinois Finance Authority, RB: |  |  |  |  |  |  |  |
Advocate Health Care Network, Series D, 6.50%, 11/01/18 (a) |  |  | 9,700 |  |  |  | 11,613,616 |
Community Rehabilitation Providers Facilities, Series A, 6.50%, 7/01/22 |  |  | 575 |  |  |  | 576,817 |
Disposal Waste Management, Inc., Series A, AMT, 5.05%, 8/01/29 |  |  | 1,000 |  |  |  | 1,024,960 |

See Notes to Financial Statements.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 51

Schedule of Investments (continued) |  | BlackRock MuniVest Fund, Inc. (MVF) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
Illinois (concluded) |
Illinois Finance Authority, RB (concluded) |  |  |  |  |  |  |  |
Memorial Health System, Series A, 5.25%, 7/01/44 |  | $ | 1,785 |  |  | $ | 1,959,145 |
Illinois Finance Authority, Refunding RB, Series A: |  |  |  |  |  |  |  |
Northwestern Memorial Hospital, 6.00%, 8/15/39 |  |  | 9,000 |  |  |  | 10,505,700 |
OSF Healthcare System, 6.00%, 5/15/39 |  |  | 4,990 |  |  |  | 5,884,458 |
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 6/01/28 |  |  | 2,645 |  |  |  | 3,103,537 |
Regional Transportation Authority, RB: |  |  |  |  |  |  |  |
Series A (AMBAC), 7.20%, 11/01/20 |  |  | 2,240 |  |  |  | 2,631,238 |
Series C (NPFGC), 7.75%, 6/01/20 |  |  | 4,000 |  |  |  | 4,710,800 |
Village of Hodgkins Illinois, RB, Metropolitan Biosolids Management LLC Project, AMT, 6.00%, 11/01/23 |  |  | 10,000 |  |  |  | 10,017,500 |
|  |  |  |  |  |  | 84,378,919 |
Indiana — 2.3% |  |  |  |  |  |  |  |
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT, 6.75%, 1/01/34 |  |  | 2,250 |  |  |  | 2,752,448 |
Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges, Series A, AMT, 5.00%, 7/01/40 |  |  | 2,640 |  |  |  | 2,837,234 |
Indiana Health & Educational Facilities Financing Authority, RB, Clarian Health Obligation, Series A, 5.25%, 2/15/40 |  |  | 8,980 |  |  |  | 9,372,965 |
|  |  |  |  |  |  | 14,962,647 |
Iowa — 1.6% |  |  |  |  |  |  |  |
Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.25%, 12/01/25 |  |  | 4,500 |  |  |  | 4,912,020 |
Iowa Tobacco Settlement Authority, Refunding RB, Asset-Backed: |  |  |  |  |  |  |  |
CAB, Series B, 5.60%, 6/01/34 |  |  | 1,500 |  |  |  | 1,426,950 |
Series C, 5.63%, 6/01/46 |  |  | 4,500 |  |  |  | 3,997,530 |
|  |  |  |  |  |  | 10,336,500 |
Kentucky — 2.7% |  |  |  |  |  |  |  |
County of Owen Kentucky, RB, Kentucky American Water Co. Project, Series B, 5.63%, 9/01/39 |  |  | 1,000 |  |  |  | 1,105,530 |
Kentucky Economic Development Finance Authority, Refunding RB, Hospital Facilities, St. Elizabeth Medical Center, Inc., Series A, 5.50%, 5/01/39 |  |  | 8,000 |  |  |  | 9,108,720 |
Lexington-Fayette Urban County Airport Board, Refunding GARB, Series A, 5.00%, 7/01/27 |  |  | 7,000 |  |  |  | 7,996,730 |
|  |  |  |  |  |  | 18,210,980 |
Louisiana — 3.2% |  |  |  |  |  |  |  |
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35 |  |  | 2,615 |  |  |  | 3,139,281 |
Parish of St. Charles Louisiana, RB, Valero Energy Corp., 4.00%, 12/01/40 (c) |  |  | 2,210 |  |  |  | 2,405,519 |
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A: |  |  |  |  |  |  |  |
5.25%, 5/15/31 |  |  | 3,420 |  |  |  | 3,799,004 |
5.25%, 5/15/32 |  |  | 4,375 |  |  |  | 4,914,175 |
5.25%, 5/15/33 |  |  | 4,750 |  |  |  | 5,312,780 |
5.25%, 5/15/35 |  |  | 1,500 |  |  |  | 1,670,655 |
|  |  |  |  |  |  | 21,241,414 |
Maine — 1.0% |  |  |  |  |  |  |  |
Maine Health & Higher Educational Facilities Authority, RB, Series A, 5.00%, 7/01/39 |  |  | 5,000 |  |  |  | 5,508,700 |
Portland Housing Development Corp., Refunding RB, Senior Living, Retirement Facilities, Series A, 6.00%, 2/01/34 |  |  | 1,190 |  |  |  | 1,203,376 |
|  |  |  |  |  |  | 6,712,076 |
Municipal Bonds |  | Par (000) |  |  | Value |
Maryland — 1.8% |  |  |  |  |  |  |  |
Maryland Community Development Administration, HRB, Series H, AMT, 5.10%, 9/01/37 |  |  | 1,835 |  |  |  | 1,872,911 |
Maryland Community Development Administration, Refunding, HRB, Residential, Series D, AMT, 4.90%, 9/01/42 |  |  | 3,250 |  |  |  | 3,296,540 |
Maryland Health & Higher Educational Facilities Authority, Refunding RB: |  |  |  |  |  |  |  |
Charlestown Community Project, 6.25%, 1/01/41 |  |  | 2,000 |  |  |  | 2,263,480 |
University of Maryland Medical System, 5.00%, 7/01/34 |  |  | 2,100 |  |  |  | 2,299,374 |
University of Maryland Medical System, 5.13%, 7/01/39 |  |  | 2,100 |  |  |  | 2,296,539 |
|  |  |  |  |  |  | 12,028,844 |
Massachusetts — 4.0% |  |  |  |  |  |  |  |
Massachusetts Bay Transportation Authority, Refunding RB, General Transportation System, Series A, 7.00%, 3/01/19 |  |  | 1,460 |  |  |  | 1,567,149 |
Massachusetts HFA, RB, AMT: |  |  |  |  |  |  |  |
M/F Housing, Series A, 5.20%, 12/01/37 |  |  | 2,865 |  |  |  | 2,921,039 |
S/F Housing, Series 130, 5.00%, 12/01/32 |  |  | 2,500 |  |  |  | 2,559,075 |
Massachusetts HFA, Refunding RB, Series C, AMT, 5.35%, 12/01/42 |  |  | 6,550 |  |  |  | 6,844,161 |
Massachusetts Water Resources Authority, RB, Series A, 6.50%, 7/15/19 (d) |  |  | 11,640 |  |  |  | 12,982,907 |
|  |  |  |  |  |  | 26,874,331 |
Michigan — 3.7% |  |  |  |  |  |  |  |
City of Detroit Michigan Water Supply System, RB, 2nd Lien, Series B (AGM), 6.25%, 7/01/36 |  |  | 2,500 |  |  |  | 2,758,800 |
Michigan State Hospital Finance Authority, Refunding RB, Series A: |  |  |  |  |  |  |  |
Henry Ford Health System, 5.25%, 11/15/46 |  |  | 7,950 |  |  |  | 8,337,244 |
McLaren Health Care, 5.75%, 5/15/38 |  |  | 7,285 |  |  |  | 8,175,883 |
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/18 (a) |  |  | 4,100 |  |  |  | 5,132,708 |
|  |  |  |  |  |  | 24,404,635 |
Mississippi — 4.9% |  |  |  |  |  |  |  |
County of Lowndes Mississippi, Refunding RB, Solid Waste Disposal & Pollution Control, Weyerhaeuser Co. Project: |  |  |  |  |  |  |  |
Series A, 6.80%, 4/01/22 |  |  | 9,160 |  |  |  | 11,651,153 |
Series B, 6.70%, 4/01/22 |  |  | 4,500 |  |  |  | 5,694,795 |
Mississippi Business Finance Corp., Refunding RB, System Energy Resource, Inc. Project, 5.88%, 4/01/22 |  |  | 15,000 |  |  |  | 15,015,300 |
|  |  |  |  |  |  | 32,361,248 |
Nebraska — 1.0% |  |  |  |  |  |  |  |
Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.00%, 9/01/42 |  |  | 6,200 |  |  |  | 6,800,966 |
New Hampshire — 0.8% |  |  |  |  |  |  |  |
New Hampshire Housing Finance Authority, Refunding RB, S/F Housing, Acquisition, Series H, AMT, 5.15%, 1/01/40 |  |  | 5,185 |  |  |  | 5,304,048 |
New Jersey — 9.0% |  |  |  |  |  |  |  |
New Jersey EDA, RB: |  |  |  |  |  |  |  |
Continental Airlines, Inc. Project, Series A, AMT, 5.63%, 11/15/30 |  |  | 1,530 |  |  |  | 1,737,407 |
Private Activity Bond, The Goethals Bridge Replacement Project, AMT, 5.13%, 1/01/34 |  |  | 1,050 |  |  |  | 1,162,770 |
School Facilities Construction, Series UU, 5.00%, 6/15/40 |  |  | 3,890 |  |  |  | 4,214,543 |
The Goethals Bridge Replacement Project, AMT, 5.38%, 1/01/43 |  |  | 10,000 |  |  |  | 11,101,800 |

See Notes to Financial Statements.

52 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Schedule of Investments (continued) |  | BlackRock MuniVest Fund, Inc. (MVF) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
New Jersey (concluded) |  |  |  |  |  |  |  |
New Jersey EDA, Refunding RB, School Facilities Construction, Series AA, 5.25%, 12/15/33 |  | $ | 10,000 |  |  | $ | 10,888,300 |
New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series AA, 6.38%, 10/01/28 |  |  | 580 |  |  |  | 602,974 |
New Jersey Transportation Trust Fund Authority, RB: |  |  |  |  |  |  |  |
CAB, Transportation System, Series A, 0.00%, 12/15/38 (b) |  |  | 7,260 |  |  |  | 2,272,670 |
Transportation Program, Series AA, 5.25%, 6/15/33 |  |  | 8,750 |  |  |  | 9,817,500 |
Transportation Program, Series AA, 5.00%, 6/15/44 |  |  | 8,075 |  |  |  | 8,657,611 |
Transportation System, Series B, 5.50%, 6/15/31 |  |  | 8,000 |  |  |  | 9,214,320 |
|  |  |  |  |  |  | 59,669,895 |
New York — 5.8% |  |  |  |  |  |  |  |
Build NYC Resource Corp., Refunding RB, Pratt Paper, Inc. Project, AMT, 5.00%, 1/01/35 (e) |  |  | 545 |  |  |  | 581,640 |
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 6/15/40 |  |  | 4,150 |  |  |  | 4,798,936 |
Metropolitan Transportation Authority, RB, Series C: |  |  |  |  |  |  |  |
6.25%, 11/15/23 |  |  | 3,245 |  |  |  | 3,861,063 |
6.50%, 11/15/28 |  |  | 14,925 |  |  |  | 17,870,300 |
New York Counties Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 6/01/41 (e) |  |  | 3,500 |  |  |  | 3,562,370 |
New York Liberty Development Corp., RB, Goldman Sachs Headquarters, 5.50%, 10/01/37 |  |  | 2,000 |  |  |  | 2,460,440 |
New York Liberty Development Corp., Refunding RB, 3 World Trade Center Project, Class 2 (e): |  |  |  |  |  |  |  |
5.15%, 11/15/34 |  |  | 460 |  |  |  | 505,715 |
5.38%, 11/15/40 |  |  | 1,145 |  |  |  | 1,279,457 |
Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8, 6.00%, 12/01/36 |  |  | 3,165 |  |  |  | 3,735,301 |
|  |  |  |  |  |  | 38,655,222 |
North Carolina — 0.6% |  |  |  |  |  |  |  |
County of Gaston North Carolina Industrial Facilities & Pollution Control Financing Authority, RB, Exempt Facilities, National Gypsum Co. Project, AMT, 5.75%, 8/01/35 |  |  | 4,105 |  |  |  | 4,112,964 |
Ohio — 3.9% |  |  |  |  |  |  |  |
Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2, 6.50%, 6/01/47 |  |  | 1,125 |  |  |  | 1,003,635 |
County of Allen Ohio Hospital Facilities, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 6/01/38 |  |  | 2,875 |  |  |  | 3,263,901 |
County of Franklin Ohio, RB, Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 7/01/40 |  |  | 1,690 |  |  |  | 1,870,036 |
County of Lucas Ohio, Refunding RB, Promedica Healthcare, Series A, 6.50%, 11/15/37 |  |  | 1,915 |  |  |  | 2,401,984 |
County of Montgomery Ohio, RB, Catholic Health Initiatives, Series D-2, 5.45%, 10/01/38 |  |  | 9,230 |  |  |  | 10,844,604 |
County of Montgomery Ohio, Refunding RB, Catholic Health, Series A, 5.50%, 5/01/34 |  |  | 5,470 |  |  |  | 6,263,533 |
|  |  |  |  |  |  | 25,647,693 |
Pennsylvania — 1.9% |  |  |  |  |  |  |  |
City of Philadelphia Pennsylvania IDA, RB, Retirement Facilities, Rieder House Project, Series A, 6.10%, 7/01/33 |  |  | 1,295 |  |  |  | 1,301,436 |
Commonwealth of Pennsylvania, GO, 1st Series, 5.00%, 6/15/29 |  |  | 5,000 |  |  |  | 5,872,600 |
Municipal Bonds |  | Par (000) |  |  | Value |
Pennsylvania (concluded) |  |  |  |  |  |  |  |
Delaware River Port Authority, RB, Series D, 5.00%, 1/01/40 |  |  | 195 |  |  |  | 217,618 |
Montgomery County Industrial Development Authority, Refunding RB, Whitemarsh Continuing Care, 5.25%, 1/01/40 (f) |  |  | 2,625 |  |  |  | 2,658,049 |
Pennsylvania Economic Development Financing Authority, RB, AMT, 5.00%, 12/31/38 (f) |  |  | 2,565 |  |  |  | 2,826,450 |
|  |  |  |  |  |  | 12,876,153 |
Rhode Island — 0.4% |  |  |  |  |  |  |  |
Tobacco Settlement Financing Corp, RB, Asset-Backed, Series A, 6.25%, 6/01/42 |  |  | 2,500 |  |  |  | 2,511,025 |
South Carolina — 0.2% |  |  |  |  |  |  |  |
County of Georgetown South Carolina, Refunding RB, International Paper Co. Project, Series A, AMT, 5.55%, 12/01/29 |  |  | 1,000 |  |  |  | 1,016,570 |
Texas — 13.3% |  |  |  |  |  |  |  |
Brazos River Authority, Refunding RB, Texas Utility Co., Series A, AMT, 7.70%, 4/01/33 (g)(h) |  |  | 3,055 |  |  |  | 145,113 |
Central Texas Regional Mobility Authority, Refunding RB, Senior Lien: |  |  |  |  |  |  |  |
5.75%, 1/01/31 |  |  | 1,000 |  |  |  | 1,157,400 |
6.00%, 1/01/41 |  |  | 4,300 |  |  |  | 4,999,137 |
Series A, 5.00%, 1/01/43 |  |  | 6,925 |  |  |  | 7,552,474 |
City of Austin Texas Airport System, RB, AMT, 5.00%, 11/15/39 |  |  | 5,000 |  |  |  | 5,608,600 |
City of Houston Texas Airport System, Refunding ARB, United Airlines, Inc. Terminal E Project, AMT, 5.00%, 7/01/29 |  |  | 2,665 |  |  |  | 2,866,634 |
City of San Antonio TX Water System Revenue, Refunding RB, System Junior Lien, Series B: |  |  |  |  |  |  |  |
5.00%, 5/15/24 |  |  | 500 |  |  |  | 616,915 |
5.00%, 5/15/26 |  |  | 1,000 |  |  |  | 1,228,350 |
County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 1/01/43 |  |  | 850 |  |  |  | 995,205 |
County of Harris Texas Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B (a): |  |  |  |  |  |  |  |
7.13%, 12/01/18 |  |  | 3,500 |  |  |  | 4,290,720 |
7.25%, 12/01/18 |  |  | 5,400 |  |  |  | 6,644,862 |
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45 |  |  | 5,000 |  |  |  | 6,025,000 |
County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Trinity Terrace Project, 5.00%, 10/01/44 |  |  | 875 |  |  |  | 931,201 |
La Vernia Higher Education Finance Corp., RB, KIPP, Inc., Series A, 6.25%, 8/15/39 |  |  | 925 |  |  |  | 1,053,103 |
Love Field Airport Modernization Corp., RB, Southwest Airlines Co. Project, 5.25%, 11/01/40 |  |  | 3,600 |  |  |  | 3,943,800 |
New Hope Cultural Education Facilities Corp., Refunding RB, 1st Mortgage, Morningside Ministries Project, 6.25%, 1/01/33 |  |  | 1,600 |  |  |  | 1,797,840 |
North Texas Education Finance Corp., ERB, Uplift Education, Series A, 5.13%, 12/01/42 |  |  | 1,000 |  |  |  | 1,093,280 |
North Texas Tollway Authority, Refunding RB, 1st Tier, Series A, 6.25%, 1/01/39 |  |  | 3,500 |  |  |  | 4,050,480 |
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien: |  |  |  |  |  |  |  |
LBJ Infrastructure Group LLC, LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40 |  |  | 10,000 |  |  |  | 12,084,800 |
NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39 |  |  | 4,710 |  |  |  | 5,599,012 |

See Notes to Financial Statements.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 53

Schedule of Investments (continued) |  | BlackRock MuniVest Fund, Inc. (MVF) (Percentages shown are based on Net Assets)

Municipal Bonds |  | Par (000) |  |  | Value |
Texas (concluded) |  |  |  |  |  |  |  |
Texas State University System, Refunding (AGM), 5.00%, 3/15/30 |  | $ | 5,660 |  |  | $ | 5,927,775 |
Texas Transportation Commission, Refunding RB, Central Texas Turnpike System, 1st Tier, Series A, 4.00%, 8/15/38 |  |  | 9,375 |  |  |  | 9,520,219 |
|  |  |  |  |  |  | 88,131,920 |
Vermont — 0.0% |  |  |  |  |  |  |  |
Vermont Educational & Health Buildings Financing Agency, RB, Developmental & Mental Health, Series A, 6.38%, 6/15/22 |  |  | 30 |  |  |  | 30,480 |
Virginia — 4.7% |  |  |  |  |  |  |  |
City of Portsmouth Virginia, GO, Refunding, Series D, 5.00%, 7/15/34 |  |  | 3,105 |  |  |  | 3,557,243 |
County of Fairfax Virginia EDA, Refunding RB, Goodwin House, Inc.: |  |  |  |  |  |  |  |
5.13%, 10/01/37 |  |  | 2,000 |  |  |  | 2,074,840 |
5.13%, 10/01/42 |  |  | 6,015 |  |  |  | 6,217,465 |
Virginia Commonwealth Transportation Board, RB, Capital Projects, 5.00%, 5/15/32 |  |  | 8,000 |  |  |  | 9,259,600 |
Virginia HDA, Refunding RB, S/F Housing, Sub-Series A-3, AMT, 5.05%, 7/01/26 |  |  | 1,325 |  |  |  | 1,375,323 |
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT: |  |  |  |  |  |  |  |
6.00%, 1/01/37 |  |  | 2,620 |  |  |  | 3,044,519 |
5.50%, 1/01/42 |  |  | 5,140 |  |  |  | 5,633,029 |
|  |  |  |  |  |  | 31,162,019 |
Washington — 4.9% |  |  |  |  |  |  |  |
Energy Northwest, Refunding RB, Series B, 7.13%, 7/01/16 |  |  | 14,320 |  |  |  | 15,607,798 |
State of Washington, GO, Series B, 5.00%, 2/01/25 |  |  | 3,000 |  |  |  | 3,724,980 |
Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 1/01/45 |  |  | 4,010 |  |  |  | 4,775,549 |
Washington Health Care Facilities Authority, Refunding RB, Catholic Health Initiatives, Series D, 6.38%, 10/01/36 |  |  | 7,000 |  |  |  | 8,141,560 |
|  |  |  |  |  |  | 32,249,887 |
West Virginia — 0.4% |  |  |  |  |  |  |  |
West Virginia Hospital Finance Authority, Refunding RB, Improvement, Charleston Area Medical Center, Inc., Series A, 5.63%, 9/01/32 |  |  | 2,500 |  |  |  | 2,816,525 |
Wisconsin — 1.0% |  |  |  |  |  |  |  |
Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Series C, 5.25%, 4/01/39 |  |  | 6,100 |  |  |  | 6,726,348 |
Wyoming — 1.3% |  |  |  |  |  |  |  |
County of Sweetwater Wyoming, Refunding RB, Idaho Power Co. Project, Remarketing, 5.25%, 7/15/26 |  |  | 4,500 |  |  |  | 5,189,625 |
Wyoming Community Development Authority, Refunding RB, Series 2 & 3, 4.05%, 12/01/38 |  |  | 3,100 |  |  |  | 3,149,445 |
|  |  |  |  |  |  | 8,339,070 |
Total Municipal Bonds — 110.7% |  |  |  |  |  |  | 734,145,848 |
Municipal Bonds Transferred to Tender Option Bond Trusts (i) |  |  |  |  |  |
Arizona — 0.6% |  |  |  |  |  |  |  |
City of Phoenix Arizona Civic Improvement Corp., Refunding RB, Water System, Junior Lien, Series A, 5.00%, 7/01/34 |  |  | 3,500 |  |  |  | 3,955,805 |
Municipal Bonds Transferred to Tender Option Bond Trusts (i) |  | Par (000) |  |  | Value |
California — 3.5% |  |  |  |  |  |  |  |
University of California, RB, General, Series O, 5.25%, 5/15/39 |  | $ | 20,000 |  |  | $ | 22,880,400 |
Connecticut — 2.0% |  |  |  |  |  |  |  |
Connecticut State Health & Educational Facility Authority, RB, Yale University, Series Z-3, 5.05%, 7/01/42 |  |  | 12,000 |  |  |  | 13,108,680 |
District of Columbia — 1.3% |  |  |  |  |  |  |  |
District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 5.50%, 10/01/39 |  |  | 7,495 |  |  |  | 8,472,970 |
Florida — 2.5% |  |  |  |  |  |  |  |
County of Miami-Dade Florida Water & Sewer System (AGM), 5.00%, 10/01/39 |  |  | 14,747 |  |  |  | 16,865,032 |
Illinois — 2.9% |  |  |  |  |  |  |  |
State of Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/18 (a) |  |  | 10,000 |  |  |  | 11,729,600 |
State of Illinois Toll Highway Authority, RB, Senior Priority, Series B, 5.50%, 1/01/33 |  |  | 6,999 |  |  |  | 7,736,235 |
|  |  |  |  |  |  | 19,465,835 |
Kentucky — 1.6% |  |  |  |  |  |  |  |
County of Louisville & Jefferson Kentucky Metropolitan Government Parking Authority, RB, River City, Inc., 1st Mortgage, Series A, 5.38%, 12/01/39 |  |  | 9,195 |  |  |  | 10,668,039 |
Maryland — 0.8% |  |  |  |  |  |  |  |
State of Maryland Transportation Authority, RB, Transportation Facilities Project (AGM), 5.00%, 7/01/41 |  |  | 4,710 |  |  |  | 5,231,868 |
Nevada — 2.8% |  |  |  |  |  |  |  |
County of Clark Nevada Water Reclamation District, GO, Limited Tax, Series B, 5.75%, 7/01/34 |  |  | 15,789 |  |  |  | 18,627,970 |
New York — 5.8% |  |  |  |  |  |  |  |
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series DD, 5.00%, 6/15/37 |  |  | 24,199 |  |  |  | 26,808,899 |
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (j) |  |  | 10,000 |  |  |  | 11,702,200 |
|  |  |  |  |  |  | 38,511,099 |
North Carolina — 2.9% |  |  |  |  |  |  |  |
North Carolina Capital Facilities Finance Agency, Refunding RB: |  |  |  |  |  |  |  |
Duke University Project, Series A, 5.00%, 10/01/41 |  |  | 12,678 |  |  |  | 13,477,414 |
Wake Forest University, 5.00%, 1/01/38 |  |  | 5,000 |  |  |  | 5,603,500 |
|  |  |  |  |  |  | 19,080,914 |
Ohio — 2.2% |  |  |  |  |  |  |  |
Ohio Higher Educational Facility Commission, RB, Cleveland Clinic Health, Series A, 5.25%, 1/01/33 |  |  | 4,400 |  |  |  | 4,822,840 |
State of Ohio, RB, Cleveland Clinic Health Obligated Group, Series B, 5.50%, 1/01/34 |  |  | 8,500 |  |  |  | 9,608,825 |
|  |  |  |  |  |  | 14,431,665 |
Oregon — 2.0% |  |  |  |  |  |  |  |
State of Oregon Housing & Community Services Department, HRB, M/F Housing, Series A, AMT, 4.95%, 7/01/30 |  |  | 12,295 |  |  |  | 12,903,602 |
South Carolina — 0.3% |  |  |  |  |  |  |  |
State of South Carolina Housing Finance & Development Authority, Refunding RB, S/F Housing, Series B-1, 5.55%, 7/01/39 |  |  | 1,872 |  |  |  | 1,908,993 |

See Notes to Financial Statements.

54 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Schedule of Investments (continued) |  | BlackRock MuniVest Fund, Inc. (MVF) (Percentages shown are based on Net Assets)

Municipal Bonds Transferred to Tender Option Bond Trusts (i) |  | Par (000) |  |  | Value |
Texas — 7.6% |  |  |  |  |  |  |  |
City of Houston Texas, Refunding RB, Airport System, Senior Lien, Series A, 5.50%, 7/01/34 |  | $ | 8,333 |  |  | $ | 9,450,140 |
City of Houston Texas Higher Education Finance Corp., RB, Rice University Project, Series A, 5.00%, 5/15/40 |  |  | 10,000 |  |  |  | 11,449,789 |
County of Harris Texas Health Facilities Development Corp., Refunding RB, School Health Care System, Series B, 5.75%, 7/01/27 (d) |  |  | 20,970 |  |  |  | 26,997,827 |
Texas Department of Housing & Community Affairs, RB, S/F Mortgage, Series B, AMT, 5.25%, 9/01/32 |  |  | 2,531 |  |  |  | 2,595,466 |
|  |  |  |  |  |  | 50,493,222 |
Virginia — 1.2% |  |  |  |  |  |  |  |
County of Fairfax Virginia IDA, Refunding RB, Health Care, Inova Health System, Series A, 5.50%, 5/15/35 |  |  | 2,099 |  |  |  | 2,395,945 |
Virginia Small Business Financing Authority, Refunding RB, Sentara Healthcare, 5.00%, 11/01/40 |  |  | 5,002 |  |  |  | 5,647,015 |
|  |  |  |  |  |  | 8,042,960 |
Washington — 5.9% |  |  |  |  |  |  |  |
Central Puget Sound Regional Transit Authority, RB, Series A: |  |  |  |  |  |  |  |
5.00%, 11/01/34 |  |  | 5,000 |  |  |  | 5,482,186 |
5.00%, 11/01/36 |  |  | 6,000 |  |  |  | 6,565,399 |
(AGM), 5.00%, 11/01/32 |  |  | 14,007 |  |  |  | 15,358,864 |
Municipal Bonds Transferred to Tender Option Bond Trusts (i) |  | Par (000) |  |  | Value |
Washington (concluded) |  |  |  |  |  |  |  |
Washington Health Care Facilities Authority, Refunding RB, Seattle Children’s Hospital, 5.00%, 10/01/38 |  |  | 10,000 |  |  |  | 11,850,500 |
|  |  |  |  |  |  | 39,256,949 |
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 45.9% |  |  |  | 303,906,003 |
Total Long-Term Investments (Cost — $933,477,681) — 156.6% |  |  |  | 1,038,051,851 |
Short-Term Securities |  | Shares |  |  |  |
FFI Institutional Tax-Exempt Fund, 0.03% (k)(l) |  |  | 772,258 |  |  |  | 772,258 |
Total Short-Term Securities (Cost — $772,258) — 0.1% |  |  |  |  |  |  | 772,258 |
Total Investments (Cost — $934,249,939) — 156.7% |  |  |  | 1,038,824,109 |
Other Assets Less Liabilities — 2.6% |  |  |  |  |  |  | 17,200,298 |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (22.5%) |  |  |  | (149,082,043 | )
VMTP Shares, at Liquidation Value — (36.8%) |  |  |  |  |  |  | (243,800,000 | )
Net Assets Applicable to Common Shares — 100.0% |  |  | $ | 663,142,364 |

Notes to Schedule of Investments

(a) |  | U.S. government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

(b) |  | Zero-coupon bond.

(c) |  | Variable rate security. Rate shown is as of report date.

(d) |  | Security is collateralized by Municipal or U.S. Treasury obligations.

(e) |  | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(f) |  | When-issued security. Unsettled when-issued transactions were as follows:

Counterparty |  | Value |  |  | Unrealized Appreciation |
J.P. Morgan Securities LLC |  | $ | 2,826,450 |  |  | $ | 28,087 |
Piper Jaffray |  | $ | 2,658,049 |  |  | $ | 19,294 |

(g) |  | Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.

(h) |  | Non-income producing security.

(i) |  | Represent bonds transferred to a TOB Trust. In exchange for which the Trust received cash and residual certificates. These bonds serve as collateral in a secured borrowing. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOB Trusts.

(j) |  | All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB Trust Certificates and proceeds received from the sale of the security contributed to the TOB Trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreement, which expires on November 15, 2019, is $5,295,486.

(k) |  | Represents the current yield as of report date.

(l) |  | During the six months ended February 28, 2015, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the 1940 Act were as follows:

Affiliate |  | Shares Held at August 31, 2014 |  |  | Net Activity |  |  | Shares Held at February 28, 2015 |  |  | Income |
FFI Institutional Tax-Exempt Fund |  |  | 13,105,794 |  |  |  | (12,333,536 | ) |  |  | 772,258 |  |  | $ | 4,013 |

See Notes to Financial Statements.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 55

Schedule of Investments (concluded) |  | BlackRock MuniVest Fund, Inc. (MVF)

Ÿ |  | As of February 28, 2015, financial futures contracts outstanding were as follows:

Contracts Short |  |  | Issue |  | Exchange |  | Expiration |  | Notional Value |  |  | Unrealized Appreciation |
| (582 | ) |  | 10-Year U.S. Treasury Note |  | Chicago Board of Trade |  | June 2015 |  | $ | 74,377,781 |  |  | $ | 53,719 |

Ÿ |  | Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows:

| Ÿ |  | Level 1 — unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access

| Ÿ |  | Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

| Ÿ |  | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements.

As of February 28, 2015, the following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-Term Investments1 |  |  | — |  |  | $ | 1,038,051,851 |  |  | — |  | $ | 1,038,051,851 |
Short-Term Securities |  | $ | 772,258 |  |  |  | — |  |  | — |  |  | 772,258 |
Total |  | $ | 772,258 |  |  | $ | 1,038,051,851 |  |  | — |  | $ | 1,038,824,109 |
1 See above Schedule of Investments for values in each state or political subdivision. |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  | Total |
Derivative Financial Instruments2 |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | 53,719 |  |  |  | — |  |  | — |  | $ | 53,719 |
2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |

The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of February 28, 2015, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash pledged for financial futures contracts |  | $ | 790,000 |  |  |  | — |  |  |  | — |  |  | $ | 790,000 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TOB Trust Certificates |  |  | — |  |  | $ | (149,065,588 | ) |  |  | — |  |  |  | (149,065,588 | )
VMTP Shares |  |  | — |  |  |  | (243,800,000 | ) |  |  | — |  |  |  | (243,800,000 | )
Total |  | $ | 790,000 |  |  | $ | (392,865,588 | ) |  |  | — |  |  | $ | (392,075,588 | )
During the six months ended February 28, 2015, there were no transfers between levels. |

See Notes to Financial Statements.

56 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Statements of Assets and Liabilities |  |

February 28, 2015 (Unaudited) |  | BlackRock Municipal Bond Investment Trust (BIE) |  |  | BlackRock Municipal Bond Trust (BBK) |  |  | BlackRock Municipal Income Investment Quality Trust (BAF) |  |  | BlackRock Municipal Income Quality Trust (BYM) |
Assets |
Investments at value — unaffiliated1 |  | $ | 88,893,434 |  |  | $ | 280,991,434 |  |  | $ | 215,152,822 |  |  | $ | 650,980,818 |
Investments at value — affiliated2 |  |  | 349,386 |  |  |  | 1,337,487 |  |  |  | 2,533,005 |  |  |  | 5,809,865 |
Cash pledged for financial futures contracts |  |  | 105,000 |  |  |  | 414,000 |  |  |  | 202,000 |  |  |  | 641,000 |
Interest receivable |  |  | 944,404 |  |  |  | 3,005,566 |  |  |  | 2,269,987 |  |  |  | 5,973,012 |
Investments sold receivable |  |  | 435,570 |  |  |  | 329,871 |  |  |  | 1,824,756 |  |  |  | 7,717,834 |
Deferred offering costs |  |  | 117,366 |  |  |  | — |  |  |  | — |  |  |  | — |
Prepaid expenses |  |  | 59,563 |  |  |  | 27,416 |  |  |  | 26,299 |  |  |  | 34,373 |
Total assets |  |  | 90,904,723 |  |  |  | 286,105,774 |  |  |  | 222,008,869 |  |  |  | 671,156,902 |
Accrued Liabilities |
Investments purchased payable |  |  | 1,564,584 |  |  |  | 7,371,933 |  |  |  | 4,941,740 |  |  |  | 8,297,064 |
Income dividends payable — Common Shares |  |  | 253,740 |  |  |  | 861,890 |  |  |  | 599,335 |  |  |  | 1,888,049 |
Investment advisory fees payable |  |  | 38,995 |  |  |  | 138,805 |  |  |  | 91,349 |  |  |  | 279,045 |
Officer’s and Trustees’ fees payable |  |  | 8,624 |  |  |  | 30,308 |  |  |  | 22,673 |  |  |  | 70,218 |
Variation margin payable on financial futures contracts |  |  | 8,281 |  |  |  | 47,656 |  |  |  | 22,188 |  |  |  | 77,344 |
Interest expense and fees payable |  |  | 1,808 |  |  |  | 4,280 |  |  |  | 5,718 |  |  |  | 18,679 |
Other accrued expenses payable |  |  | 32,977 |  |  |  | 68,688 |  |  |  | 55,703 |  |  |  | 79,464 |
Total accrued liabilities |  |  | 1,909,009 |  |  |  | 8,523,560 |  |  |  | 5,738,706 |  |  |  | 10,709,863 |
Other Liabilities |
TOB Trust Certificates |  |  | 16,235,837 |  |  |  | 19,494,759 |  |  |  | 31,594,766 |  |  |  | 106,051,858 |
VRDP Shares, at liquidation value of $100,000 per share3,4 |  |  | 17,800,000 |  |  |  | — |  |  |  | — |  |  |  | — |
VMTP Shares, at liquidation value of $100,000 per share3,4 |  |  | — |  |  |  | 79,900,000 |  |  |  | 42,200,000 |  |  |  | 137,200,000 |
Total other liabilities |  |  | 34,035,837 |  |  |  | 99,394,759 |  |  |  | 73,794,766 |  |  |  | 243,251,858 |
Total liabilities |  |  | 35,944,846 |  |  |  | 107,918,319 |  |  |  | 79,533,472 |  |  |  | 253,961,721 |
Net Assets Applicable to Common Shareholders |  | $ | 54,959,877 |  |  | $ | 178,187,455 |  |  | $ | 142,475,397 |  |  | $ | 417,195,181 |
Net Assets Applicable to Common Shareholders Consist of |
Paid-in capital5,6,7 |  | $ | 47,249,675 |  |  | $ | 149,361,541 |  |  | $ | 124,034,133 |  |  | $ | 374,675,197 |
Undistributed net investment income |  |  | 761,307 |  |  |  | 2,931,172 |  |  |  | 1,630,881 |  |  |  | 4,031,978 |
Accumulated net realized loss |  |  | (3,060,475 | ) |  |  | (790,508 | ) |  |  | (5,563,529 | ) |  |  | (22,846,668 | )
Net unrealized appreciation/depreciation |  |  | 10,009,370 |  |  |  | 26,685,250 |  |  |  | 22,373,912 |  |  |  | 61,334,674 |
Net Assets Applicable to Common Shareholders |  | $ | 54,959,877 |  |  | $ | 178,187,455 |  |  | $ | 142,475,397 |  |  | $ | 417,195,181 |
Net asset value per Common Share |  | $ | 16.46 |  |  | $ | 16.95 |  |  | $ | 16.28 |  |  | $ | 15.80 |
1 Investments at cost — unaffiliated |  | $ | 78,854,805 |  |  | $ | 254,137,806 |  |  | $ | 192,700,517 |  |  | $ | 589,406,835 |
2 Investments at cost — affiliated |  | $ | 349,386 |  |  | $ | 1,337,487 |  |  | $ | 2,533,005 |  |  | $ | 5,809,865 |
3 Preferred Shares outstanding: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Par value $0.001 per share |  |  | 178 |  |  |  | 799 |  |  |  | 422 |  |  |  | 1,372 |
4 Preferred Shares authorized, including Auction Market Rate Preferred Shares (“AMPS”) |  |  | unlimited |  |  |  | unlimited |  |  |  | unlimited |  |  |  | unlimited |
5 Par Value per Common Share |  | $ | 0.001 |  |  | $ | 0.001 |  |  | $ | 0.001 |  |  | $ | 0.001 |
6 Common Shares outstanding |  |  | 3,338,684 |  |  |  | 10,510,852 |  |  |  | 8,749,418 |  |  |  | 26,406,273 |
7 Common Shares authorized |  |  | unlimited |  |  |  | unlimited |  |  |  | unlimited |  |  |  | unlimited |

See Notes to Financial Statements. |  |  |  |
|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 57

Statements of Assets and Liabilities (concluded) |  |

February 28, 2015 (Unaudited) |  | BlackRock Municipal Income Trust II (BLE) |  |  | BlackRock MuniHoldings Investment Quality Fund (MFL) |  |  | BlackRock MuniVest Fund, Inc. (MVF) |
Assets |
Investments at value — unaffiliated1 |  | $ | 586,901,603 |  |  | $ | 958,122,480 |  |  | $ | 1,038,051,851 |
Investments at value — affiliated2 |  |  | 872,717 |  |  |  | 7,762,304 |  |  |  | 772,258 |
Cash pledged for financial futures contracts |  |  | 267,000 |  |  |  | 851,001 |  |  |  | 790,000 |
Interest receivable |  |  | 6,871,123 |  |  |  | 10,751,505 |  |  |  | 12,569,267 |
Investments sold receivable |  |  | 2,171,776 |  |  |  | 7,877,507 |  |  |  | 14,093,521 |
Deferred offering costs |  |  | — |  |  |  | 446,244 |  |  |  | — |
Prepaid expenses |  |  | 33,073 |  |  |  | 55,348 |  |  |  | 38,854 |
Total assets |  |  | 597,117,292 |  |  |  | 985,866,389 |  |  |  | 1,066,315,751 |
Accrued Liabilities |
Investments purchased payable |  |  | 4,520,023 |  |  |  | 28,169,706 |  |  |  | 6,089,433 |
Income dividends payable — Common Shares |  |  | 1,854,163 |  |  |  | 2,703,256 |  |  |  | 3,424,636 |
Investment advisory fees payable |  |  | 249,726 |  |  |  | 403,250 |  |  |  | 405,588 |
Officer’s and Trustees’ fees payable |  |  | 63,798 |  |  |  | 240,033 |  |  |  | 164,972 |
Variation margin payable on financial futures contracts |  |  | 26,420 |  |  |  | 93,750 |  |  |  | 90,938 |
Interest expense and fees payable |  |  | 10,538 |  |  |  | 18,848 |  |  |  | 16,455 |
Other accrued expenses payable |  |  | 76,886 |  |  |  | 99,986 |  |  |  | 115,777 |
Total accrued liabilities |  |  | 6,801,554 |  |  |  | 31,728,829 |  |  |  | 10,307,799 |
Other Liabilities |
TOB Trust Certificates |  |  | 68,691,599 |  |  |  | 85,627,593 |  |  |  | 149,065,588 |
VRDP Shares, at liquidation value of $100,000 per share3,4 |  |  | — |  |  |  | 274,600,000 |  |  |  | — |
VMTP Shares, at liquidation value of $100,000 per share3,4 |  |  | 151,300,000 |  |  |  | — |  |  |  | 243,800,000 |
Total other liabilities |  |  | 219,991,599 |  |  |  | 360,227,593 |  |  |  | 392,865,588 |
Total liabilities |  |  | 226,793,153 |  |  |  | 391,956,422 |  |  |  | 403,173,387 |
Net Assets Applicable to Common Shareholders |  | $ | 370,324,139 |  |  | $ | 593,909,967 |  |  | $ | 663,142,364 |
Net Assets Applicable to Common Shareholders Consist of |
Paid-in capital5,6,7 |  | $ | 332,937,772 |  |  | $ | 525,924,068 |  |  | $ | 581,945,717 |
Undistributed net investment income |  |  | 4,196,631 |  |  |  | 8,064,899 |  |  |  | 7,845,190 |
Accumulated net realized loss |  |  | (18,330,439 | ) |  |  | (40,659,271 | ) |  |  | (31,276,432 | )
Net unrealized appreciation/depreciation |  |  | 51,520,175 |  |  |  | 100,580,271 |  |  |  | 104,627,889 |
Net Assets Applicable to Common Shareholders |  | $ | 370,324,139 |  |  | $ | 593,909,967 |  |  | $ | 663,142,364 |
Net asset value per Common Share |  | $ | 15.78 |  |  | $ | 15.71 |  |  | $ | 10.36 |
1 Investments at cost — unaffiliated |  | $ | 535,404,623 |  |  | $ | 857,210,973 |  |  | $ | 933,477,681 |
2 Investments at cost — affiliated |  | $ | 872,717 |  |  | $ | 7,762,304 |  |  | $ | 772,258 |
3 Preferred Shares outstanding: |  |  |  |  |  |  |  |  |  |  |  |
Par value $0.001 per share |  |  | 1,513 |  |  |  | — |  |  |  | — |
Par value $0.10 per share |  |  | — |  |  |  | 2,746 |  |  |  | 2,438 |
4 Preferred Shares authorized, including Auction Market Rate Preferred Shares (“AMPS”) |  |  | unlimited |  |  |  | 1,000,000 |  |  |  | 10,000,000 |
5 Par Value per Common Share |  | $ | 0.001 |  |  | $ | 0.10 |  |  | $ | 0.10 |
6 Common Shares outstanding |  |  | 23,470,421 |  |  |  | 37,807,776 |  |  |  | 64,011,887 |
7 Common Shares authorized |  |  | unlimited |  |  |  | unlimited |  |  |  | 150,000,000 |

See Notes to Financial Statements. |  |  |  |
58 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Statements of Operations |  |

Six Months Ended February 28, 2015 (Unaudited) |  | BlackRock Municipal Bond Investment Trust (BIE) |  |  | BlackRock Municipal Bond Trust (BBK) |  |  | BlackRock Municipal Income Investment Quality Trust (BAF) |  |  | BlackRock Municipal Income Quality Trust (BYM) |
Investment Income |
Interest |  | $ | 2,004,262 |  |  | $ | 6,357,930 |  |  | $ | 4,664,588 |  |  | $ | 14,078,821 |
Interest — affiliated |  |  | 133 |  |  |  | 464 |  |  |  | 181 |  |  |  | 729 |
Total income |  |  | 2,004,395 |  |  |  | 6,358,394 |  |  |  | 4,664,769 |  |  |  | 14,079,550 |
Expenses |
Investment advisory |  |  | 286,263 |  |  |  | 890,250 |  |  |  | 587,553 |  |  |  | 1,767,969 |
Liquidity fees |  |  | 80,020 |  |  |  | — |  |  |  | — |  |  |  | — |
Professional |  |  | 22,278 |  |  |  | 30,936 |  |  |  | 28,961 |  |  |  | 43,963 |
Rating agency |  |  | 18,929 |  |  |  | 16,449 |  |  |  | 16,449 |  |  |  | 16,449 |
Transfer agent |  |  | 9,265 |  |  |  | 13,169 |  |  |  | 12,673 |  |  |  | 20,300 |
Remarketing fees on Preferred Shares |  |  | 8,949 |  |  |  | — |  |  |  | — |  |  |  | — |
Accounting services |  |  | 8,002 |  |  |  | 22,096 |  |  |  | 18,298 |  |  |  | 29,722 |
Registration |  |  | 4,807 |  |  |  | 4,823 |  |  |  | 4,809 |  |  |  | 4,817 |
Custodian |  |  | 3,612 |  |  |  | 9,047 |  |  |  | 6,176 |  |  |  | 14,987 |
Printing |  |  | 2,861 |  |  |  | 3,827 |  |  |  | 3,435 |  |  |  | 5,466 |
Officer and Trustees |  |  | 2,525 |  |  |  | 8,086 |  |  |  | 6,467 |  |  |  | 19,050 |
Miscellaneous |  |  | 10,394 |  |  |  | 17,622 |  |  |  | 12,485 |  |  |  | 23,405 |
Total expenses excluding interest expense, fees and amortization of offering costs |  |  | 457,905 |  |  |  | 1,016,305 |  |  |  | 697,306 |  |  |  | 1,946,128 |
Interest expense, fees and amortization of offering costs1 |  |  | 69,531 |  |  |  | 491,502 |  |  |  | 337,257 |  |  |  | 1,018,180 |
Total expenses |  |  | 527,436 |  |  |  | 1,507,807 |  |  |  | 1,034,563 |  |  |  | 2,964,308 |
Less fees waived by Manager |  |  | (35,271 | ) |  |  | (119 | ) |  |  | (23 | ) |  |  | (133 | )
Total expenses after fees waived |  |  | 492,165 |  |  |  | 1,507,688 |  |  |  | 1,034,540 |  |  |  | 2,964,175 |
Net investment income |  |  | 1,512,230 |  |  |  | 4,850,706 |  |  |  | 3,630,229 |  |  |  | 11,115,375 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  | 53,017 |  |  |  | 968,157 |  |  |  | 623,598 |  |  |  | 880,654 |
Financial futures contracts |  |  | (95,430 | ) |  |  | (350,246 | ) |  |  | (235,826 | ) |  |  | (1,181,037 | )
|  |  | (42,413 | ) |  |  | 617,911 |  |  |  | 387,772 |  |  |  | (300,383 | )
Net change in unrealized appreciation/depreciation on: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  | 706,718 |  |  |  | 4,285,589 |  |  |  | 2,390,573 |  |  |  | 7,094,897 |
Financial futures contracts |  |  | (21,615 | ) |  |  | (139,075 | ) |  |  | (59,920 | ) |  |  | (162,230 | )
|  |  | 685,103 |  |  |  | 4,146,514 |  |  |  | 2,330,653 |  |  |  | 6,932,667 |
Net realized and unrealized gain |  |  | 642,690 |  |  |  | 4,764,425 |  |  |  | 2,718,425 |  |  |  | 6,632,284 |
Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations |  | $ | 2,154,920 |  |  | $ | 9,615,131 |  |  | $ | 6,348,654 |  |  | $ | 17,747,659 |
1 Related to TOB Trusts, VRDP Shares and/or VMTP Shares. |

See Notes to Financial Statements. |  |  |  |
|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 59

Statements of Operations (concluded) |  |

Six Months Ended February 28, 2015 (Unaudited) |  | BlackRock Municipal Income Trust II (BLE) |  |  | BlackRock MuniHoldings Investment Quality Fund (MFL) |  |  | BlackRock MuniVest Fund, Inc. (MVF) |
Investment Income |
Interest |  | $ | 13,697,467 |  |  | $ | 21,145,769 |  |  | $ | 24,310,079 |
Interest — affiliated |  |  | 907 |  |  |  | 788 |  |  |  | 4,013 |
Total income |  |  | 13,698,374 |  |  |  | 21,146,557 |  |  |  | 24,314,092 |
Expenses |
Investment advisory |  |  | 1,602,326 |  |  |  | 2,598,404 |  |  |  | 2,603,833 |
Liquidity fees |  |  | — |  |  |  | 13,868 |  |  |  | — |
Professional |  |  | 42,299 |  |  |  | 61,411 |  |  |  | 62,592 |
Rating agency |  |  | 16,449 |  |  |  | 16,449 |  |  |  | 16,449 |
Transfer agent |  |  | 19,553 |  |  |  | 24,473 |  |  |  | 29,480 |
Remarketing fees on Preferred Shares |  |  | — |  |  |  | 13,617 |  |  |  | — |
Accounting services |  |  | 29,722 |  |  |  | 59,711 |  |  |  | 64,078 |
Registration |  |  | 5,313 |  |  |  | 6,760 |  |  |  | 14,494 |
Custodian |  |  | 13,930 |  |  |  | 19,529 |  |  |  | 20,280 |
Printing |  |  | 4,932 |  |  |  | 7,409 |  |  |  | 7,809 |
Officer and Trustees |  |  | 16,919 |  |  |  | 26,908 |  |  |  | 30,681 |
Miscellaneous |  |  | 23,647 |  |  |  | 27,823 |  |  |  | 29,104 |
Total expenses excluding interest expense, fees and amortization of offering costs |  |  | 1,775,090 |  |  |  | 2,876,362 |  |  |  | 2,878,800 |
Interest expense, fees and amortization of offering costs1 |  |  | 1,005,999 |  |  |  | 1,539,660 |  |  |  | 1,717,531 |
Total expenses |  |  | 2,781,089 |  |  |  | 4,416,022 |  |  |  | 4,596,331 |
Less fees waived by Manager |  |  | (243 | ) |  |  | (119,061 | ) |  |  | (990 | )
Total expenses after fees waived |  |  | 2,780,846 |  |  |  | 4,296,961 |  |  |  | 4,595,341 |
Net investment income |  |  | 10,917,528 |  |  |  | 16,849,596 |  |  |  | 19,718,751 |
Realized and Unrealized Gain (Loss) |
Net realized gain (loss) from: |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  | 262,387 |  |  |  | 2,686,573 |  |  |  | 2,803,534 |
Financial futures contracts |  |  | (724,036 | ) |  |  | (948,676 | ) |  |  | (1,232,611 | )
|  |  | (461,649 | ) |  |  | 1,737,897 |  |  |  | 1,570,923 |
Net change in unrealized appreciation/depreciation on: |  |  |  |  |  |  |  |  |  |  |  |
Investments |  |  | 7,956,576 |  |  |  | 7,109,756 |  |  |  | 5,099,784 |
Financial futures contracts |  |  | 65,761 |  |  |  | (257,555 | ) |  |  | 128,037 |
|  |  | 8,022,337 |  |  |  | 6,852,201 |  |  |  | 5,227,821 |
Net realized and unrealized gain |  |  | 7,560,688 |  |  |  | 8,590,098 |  |  |  | 6,798,744 |
Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations |  | $ | 18,478,216 |  |  | $ | 25,439,694 |  |  | $ | 26,517,495 |
1 Related to TOB Trusts, VRDP Shares and/or VMTP Shares. |

See Notes to Financial Statements. |  |  |  |
60 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Statements of Changes in Net Assets |  |

|  | BlackRock Municipal Bond Investment Trust (BIE) |  |  |  |  | BlackRock Municipal Bond Trust (BBK) |
Increase (Decrease) in Net Assets Applicable to Common Shareholders: |  | Six Months Ended February 28, 2015 (Unaudited) |  |  | Year Ended August 31, 2014 |  |  |  |  | Six Months Ended February 28, 2015 (Unaudited) |  |  | Year Ended August 31, 2014 |
Operations |
Net investment income |  | $ | 1,512,230 |  |  | $ | 3,095,298 |  |  |  |  | $ | 4,850,706 |  |  | $ | 10,163,248 |
Net realized gain (loss) |  |  | (42,413 | ) |  |  | (683,440 | ) |  |  |  |  | 617,911 |  |  |  | (1,390,541 | )
Net change in unrealized appreciation/depreciation |  |  | 685,103 |  |  |  | 7,313,640 |  |  |  |  |  | 4,146,514 |  |  |  | 27,030,711 |
Net increase in net assets applicable to Common Shareholders resulting from operations |  |  | 2,154,920 |  |  |  | 9,725,498 |  |  |  |  |  | 9,615,131 |  |  |  | 35,803,418 |
Distributions to Common Shareholders From1 |
Net investment income |  |  | (1,522,439 | ) |  |  | (3,044,880 | ) |  |  |  |  | (5,225,996 | ) |  |  | (10,140,509 | )
Net realized gain |  |  | — |  |  |  | — |  |  |  |  |  | — |  |  |  | (867,349 | )
Decrease in net assets resulting from distributions to Common Shareholders |  |  | (1,522,439 | ) |  |  | (3,044,880 | ) |  |  |  |  | (5,225,996 | ) |  |  | (11,007,858 | )
Net Assets Applicable to Common Shareholders |
Total increase in net assets applicable to Common Shareholders |  |  | 632,481 |  |  |  | 6,680,618 |  |  |  |  |  | 4,389,135 |  |  |  | 24,795,560 |
Beginning of period |  |  | 54,327,396 |  |  |  | 47,646,778 |  |  |  |  |  | 173,798,320 |  |  |  | 149,002,760 |
End of period |  | $ | 54,959,877 |  |  | $ | 54,327,396 |  |  |  |  | $ | 178,187,455 |  |  | $ | 173,798,320 |
Undistributed net investment income, end of period |  | $ | 761,307 |  |  | $ | 771,516 |  |  |  |  | $ | 2,931,172 |  |  | $ | 3,306,462 |
|  | BlackRock Municipal Income Investment Quality Trust (BAF) |  |  |  |  | BlackRock Municipal Income Quality Trust (BYM) |
Increase (Decrease) in Net Assets Applicable to Common Shareholders: |  | Six Months Ended February 28, 2015 (Unaudited) |  |  | Year Ended August 31, 2014 |  |  |  |  | Six Months Ended February 28, 2015 (Unaudited) |  |  | Year Ended August 31, 2014 |
Operations |
Net investment income |  | $ | 3,630,229 |  |  | $ | 7,255,468 |  |  |  |  | $ | 11,115,375 |  |  | $ | 22,636,343 |
Net realized gain (loss) |  |  | 387,772 |  |  |  | (3,438,451 | ) |  |  |  |  | (300,383 | ) |  |  | (6,919,380 | )
Net change in unrealized appreciation/depreciation |  |  | 2,330,653 |  |  |  | 22,136,095 |  |  |  |  |  | 6,932,667 |  |  |  | 63,874,690 |
Net increase in net assets applicable to Common Shareholders resulting from operations |  |  | 6,348,654 |  |  |  | 25,953,112 |  |  |  |  |  | 17,747,659 |  |  |  | 79,591,653 |
Distributions to Common Shareholders From1 |
Net investment income |  |  | (3,596,011 | ) |  |  | (7,192,022 | ) |  |  |  |  | (11,328,291 | ) |  |  | (24,188,146 | )
Net Assets Applicable to Common Shareholders |
Total increase in net assets applicable to Common Shareholders |  |  | 2,752,643 |  |  |  | 18,761,090 |  |  |  |  |  | 6,419,368 |  |  |  | 55,403,507 |
Beginning of period |  |  | 139,722,754 |  |  |  | 120,961,664 |  |  |  |  |  | 410,775,813 |  |  |  | 355,372,306 |
End of period |  | $ | 142,475,397 |  |  | $ | 139,722,754 |  |  |  |  | $ | 417,195,181 |  |  | $ | 410,775,813 |
Undistributed net investment income, end of period |  | $ | 1,630,881 |  |  | $ | 1,596,663 |  |  |  |  | $ | 4,031,978 |  |  | $ | 4,244,894 |
1 Distributions for annual periods determined in accordance with federal income tax regulations. |

See Notes to Financial Statements. |  |  |  |
|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 61

Statements of Changes in Net Assets |  |

|  | BlackRock Municipal Income Trust II (BLE) |  |  |  |  | BlackRock MuniHoldings Investment Quality Fund (MFL) |
Increase (Decrease) in Net Assets Applicable to Common Shareholders: |  | Six Months Ended February 28, 2015 (Unaudited) |  |  | Year Ended August 31, 2014 |  |  |  |  | Six Months Ended February 28, 2015 (Unaudited) |  |  | Year Ended August 31, 2014 |
Operations |
Net investment income |  | $ | 10,917,528 |  |  | $ | 21,890,479 |  |  |  |  | $ | 16,849,596 |  |  | $ | 33,618,131 |
Net realized gain (loss) |  |  | (461,649 | ) |  |  | (6,923,260 | ) |  |  |  |  | 1,737,897 |  |  |  | (10,629,175 | )
Net change in unrealized appreciation/depreciation |  |  | 8,022,337 |  |  |  | 58,889,836 |  |  |  |  |  | 6,852,201 |  |  |  | 92,330,069 |
Net increase in net assets applicable to Common Shareholders resulting from operations |  |  | 18,478,216 |  |  |  | 73,857,055 |  |  |  |  |  | 25,439,694 |  |  |  | 115,319,025 |
Distributions to Common Shareholders From1 |
Net investment income |  |  | (11,467,248 | ) |  |  | (23,298,295 | ) |  |  |  |  | (16,219,536 | ) |  |  | (32,439,071 | )
Capital Share Transactions |
Reinvestment of common distributions |  |  | 274,680 |  |  |  | 150,439 |  |  |  |  |  | — |  |  |  | — |
Net Assets Applicable to Common Shareholders |
Total increase in net assets applicable to Common Shareholders |  |  | 7,285,648 |  |  |  | 50,709,199 |  |  |  |  |  | 9,220,158 |  |  |  | 82,879,954 |
Beginning of period |  |  | 363,038,491 |  |  |  | 312,329,292 |  |  |  |  |  | 584,689,809 |  |  |  | 501,809,855 |
End of period |  | $ | 370,324,139 |  |  | $ | 363,038,491 |  |  |  |  | $ | 593,909,967 |  |  | $ | 584,689,809 |
Undistributed net investment income, end of period |  | $ | 4,196,631 |  |  | $ | 4,746,351 |  |  |  |  | $ | 8,064,899 |  |  | $ | 7,434,839 |

|  | BlackRock MuniVest Fund, Inc. (MVF) |
Increase (Decrease) in Net Assets Applicable to Common Shareholders: |  | Six Months Ended February 28, 2015 (Unaudited) |  |  | Year Ended August 31, 2014 |
Operations |
Net investment income |  | $ | 19,718,751 |  |  | $ | 40,614,327 |
Net realized gain (loss) |  |  | 1,570,923 |  |  |  | (2,382,781 | )
Net change in unrealized appreciation/depreciation |  |  | 5,227,821 |  |  |  | 77,481,188 |
Net increase in net assets applicable to Common Shareholders resulting from operations |  |  | 26,517,495 |  |  |  | 115,712,734 |
Distributions to Common Shareholders From1 |
Net investment income |  |  | (20,610,265 | ) |  |  | (43,508,693 | )
Capital Share Transactions |
Reinvestment of common distributions |  |  | 313,097 |  |  |  | — |
Net Assets Applicable to Common Shareholders |
Total increase in net assets applicable to Common Shareholders |  |  | 6,220,327 |  |  |  | 72,204,041 |
Beginning of period |  |  | 656,922,037 |  |  |  | 584,717,996 |
End of period |  | $ | 663,142,364 |  |  | $ | 656,922,037 |
Undistributed net investment income, end of period |  | $ | 7,845,190 |  |  | $ | 8,736,704 |
1 Distributions for annual periods determined in accordance with federal income tax regulations. |

See Notes to Financial Statements. |  |  |  |
62 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Statements of Cash Flows |  |

Six Months Ended February 28, 2015 (Unaudited) |  | BlackRock Municipal Bond Investment Trust (BIE) |  |  | BlackRock Municipal Bond Trust (BBK) |  |  | BlackRock Municipal Income Investment Quality Trust (BAF) |  |  | BlackRock Municipal Income Quality Trust (BYM) |
Cash Provided by (Used for) Operating Activities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net increase in net assets resulting from operations |  | $ | 2,154,920 |  |  | $ | 9,615,131 |  |  | $ | 6,348,654 |  |  | $ | 17,747,659 |
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used for) operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(Increase) decrease in interest receivable |  |  | (11,673 | ) |  |  | (145,614 | ) |  |  | (6,871 | ) |  |  | 115,506 |
Decrease in variation margin receivable on financial futures contracts |  |  | 2,250 |  |  |  | 8,625 |  |  |  | 5,438 |  |  |  | 22,688 |
Increase in prepaid expenses |  |  | (5,884 | ) |  |  | (5,742 | ) |  |  | (4,964 | ) |  |  | (10,320 | )
(Increase) decrease in cash pledged for financial futures contracts |  |  | (22,000 | ) |  |  | (225,000 | ) |  |  | (83,000 | ) |  |  | (145,000 | )
Decrease in investment advisory fees payable |  |  | (3,521 | ) |  |  | (9,900 | ) |  |  | (7,863 | ) |  |  | (18,666 | )
Decrease in interest expense and fees payable |  |  | (1,001 | ) |  |  | (880 | ) |  |  | (1,436 | ) |  |  | (6,133 | )
Decrease in other accrued expenses payable |  |  | (7,371 | ) |  |  | (7,844 | ) |  |  | (11,334 | ) |  |  | (18,206 | )
Increase in variation margin payable on financial futures contracts |  |  | 8,281 |  |  |  | 47,656 |  |  |  | 22,188 |  |  |  | 77,344 |
Increase in Officer’s and Trustees’ fees payable |  |  | 23 |  |  |  | 34 |  |  |  | 31 |  |  |  | 139 |
Net realized gain on investments |  |  | (53,017 | ) |  |  | (901,993 | ) |  |  | (623,598 | ) |  |  | (880,654 | )
Net unrealized gain on investments |  |  | (706,718 | ) |  |  | (4,285,589 | ) |  |  | (2,390,573 | ) |  |  | (7,094,897 | )
Amortization of premium and accretion of discount on investments |  |  | 113,959 |  |  |  | (714,012 | ) |  |  | 357,704 |  |  |  | (569,949 | )
Proceeds from sales of long-term investments |  |  | 4,752,440 |  |  |  | 47,927,711 |  |  |  | 10,781,029 |  |  |  | 29,317,820 |
Purchases of long-term investments |  |  | (5,055,261 | ) |  |  | (50,178,613 | ) |  |  | (8,842,271 | ) |  |  | (37,758,386 | )
Net proceeds from sales (purchases) of short-term securities |  |  | 349,037 |  |  |  | 2,089,150 |  |  |  | (1,211,625 | ) |  |  | (1,711,146 | )
Net cash provided by (used for) operating activities |  |  | 1,514,464 |  |  |  | 3,213,120 |  |  |  | 4,331,509 |  |  |  | (932,201 | )
Cash Provided by (Used for) Financing Activities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from TOB Trust Certificates |  |  | — |  |  |  | 1,995,000 |  |  |  | — |  |  |  | 27,535,073 |
Repayments of TOB Trust Certificates |  |  | — |  |  |  | — |  |  |  | (750,000 | ) |  |  | (15,298,994 | )
Cash dividends paid to Common Shareholders |  |  | (1,522,439 | ) |  |  | (5,225,996 | ) |  |  | (3,596,011 | ) |  |  | (11,328,291 | )
Amortization of deferred offering costs |  |  | 7,975 |  |  |  | 17,876 |  |  |  | 14,502 |  |  |  | 24,413 |
Net cash provided by (used for) financing activities |  |  | (1,514,464 | ) |  |  | (3,213,120 | ) |  |  | (4,331,509 | ) |  |  | 932,201 |
Cash |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net increase in cash |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Cash at beginning of period |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Cash at end of period |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Supplemental Disclosure of Cash Flow Information |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash paid during the period for interest and fees |  | $ | 62,557 |  |  | $ | 474,506 |  |  | $ | 324,191 |  |  | $ | 999,900 |
Non-Cash Financing Activities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital shares issued in reinvestment of distributions |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |

See Notes to Financial Statements. |  |  |  |
|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 63

Statements of Cash Flows (concluded) |  |

Six Months Ended February 28, 2015 (Unaudited) |  | BlackRock Municipal Income Trust II (BLE) |  |  | BlackRock MuniHoldings Investment Quality Fund (MFL) |  |  | BlackRock MuniVest Fund, Inc. (MVF) |
Cash Provided by Operating Activities |  |  |  |  |  |  |  |  |  |  |  |
Net increase in net assets resulting from operations |  | $ | 18,478,216 |  |  | $ | 25,439,694 |  |  | $ | 26,517,495 |
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |  |  |
(Increase) decrease in interest receivable |  |  | (61,186 | ) |  |  | 49,759 |  |  |  | (80,786 | )
Decrease in variation margin receivable on financial futures contracts |  |  | 16,893 |  |  |  | 21,688 |  |  |  | 21,875 |
Increase in prepaid expenses |  |  | (9,194 | ) |  |  | (5,099 | ) |  |  | (6,615 | )
(Increase) decrease in cash pledged for financial futures contracts |  |  | 102,000 |  |  |  | (377,001 | ) |  |  | (312,000 | )
Decrease in investment advisory fees payable |  |  | (20,303 | ) |  |  | (36,156 | ) |  |  | (35,835 | )
Decrease in interest expense and fees payable |  |  | (4,001 | ) |  |  | (5,394 | ) |  |  | (11,660 | )
Decrease in other accrued expenses payable |  |  | (20,370 | ) |  |  | (44,903 | ) |  |  | (28,495 | )
Increase in variation margin payable on financial futures contracts |  |  | 26,420 |  |  |  | 93,750 |  |  |  | 90,938 |
Increase in Officer’s and Trustees’ fees payable |  |  | 168 |  |  |  | 12,258 |  |  |  | 515 |
Net realized gain on investments |  |  | (119,154 | ) |  |  | (2,686,573 | ) |  |  | (2,803,534 | )
Net unrealized gain on investments |  |  | (7,956,576 | ) |  |  | (7,109,756 | ) |  |  | (5,099,784 | )
Amortization of premium and accretion of discount on investments |  |  | 186,738 |  |  |  | 1,367,066 |  |  |  | 707,327 |
Proceeds from sales of long-term investments |  |  | 27,588,129 |  |  |  | 45,561,771 |  |  |  | 104,530,445 |
Purchases of long-term investments |  |  | (33,556,898 | ) |  |  | (40,976,745 | ) |  |  | (119,522,208 | )
Net proceeds from sales (purchases) of short-term securities |  |  | 6,584,609 |  |  |  | (1,563,937 | ) |  |  | 12,333,536 |
Net cash provided by operating activities |  |  | 11,235,491 |  |  |  | 19,740,422 |  |  |  | 16,301,214 |
Cash Used for Financing Activities |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from TOB Trust Certificates |  |  | — |  |  |  | — |  |  |  | 4,999,999 |
Repayments of TOB Trust Certificates |  |  | — |  |  |  | (3,529,285 | ) |  |  | (1,045,022 | )
Cash dividends paid to Common Shareholders |  |  | (11,261,552 | ) |  |  | (16,219,536 | ) |  |  | (20,295,582 | )
Amortization of deferred offering costs |  |  | 26,061 |  |  |  | 8,399 |  |  |  | 39,391 |
Net cash used for financing activities |  |  | (11,235,491 | ) |  |  | (19,740,422 | ) |  |  | (16,301,214 | )
Cash |  |  |  |  |  |  |  |  |  |  |  |
Net increase in cash |  |  | — |  |  |  | — |  |  |  | — |
Cash at beginning of period |  |  | — |  |  |  | — |  |  |  | — |
Cash at end of period |  |  | — |  |  |  | — |  |  |  | — |
Supplemental Disclosure of Cash Flow Information |  |  |  |  |  |  |  |  |  |  |  |
Cash paid during the period for interest and fees |  | $ | 983,939 |  |  | $ | 1,536,655 |  |  | $ | 1,689,800 |
Non-Cash Financing Activities |  |  |  |  |  |  |  |  |  |  |  |
Capital shares issued in reinvestment of distributions |  | $ | 274,680 |  |  |  | — |  |  | $ | 313,097 |

See Notes to Financial Statements. |  |  |  |
64 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Financial Highlights |  | BlackRock Municipal Bond Investment Trust (BIE)

|  | Six Months Ended February 28, 2015 (Unaudited) |  |  | Year Ended August 31, |
|  |  | 2014 |  |  | 2013 |  |  | 2012 |  |  | 2011 |  |  | 2010 |
Per Share Operating Performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net asset value, beginning of period |  | $ | 16.27 |  |  | $ | 14.27 |  |  | $ | 16.88 |  |  | $ | 14.67 |  |  | $ | 15.51 |  |  | $ | 14.16 |
Net investment income1 |  |  | 0.45 |  |  |  | 0.93 |  |  |  | 0.90 |  |  |  | 0.92 |  |  |  | 1.03 |  |  |  | 1.02 |
Net realized and unrealized gain (loss) |  |  | 0.20 |  |  |  | 1.98 |  |  |  | (2.58 | ) |  |  | 2.26 |  |  |  | (0.89 | ) |  |  | 1.27 |
Distributions to AMPS Shareholders from net investment income |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (0.00 | )2 |  |  | (0.02 | ) |  |  | (0.02 | )
Net increase (decrease) from investment operations |  |  | 0.65 |  |  |  | 2.91 |  |  |  | (1.68 | ) |  |  | 3.18 |  |  |  | 0.12 |  |  |  | 2.27 |
Distributions to Common Shareholders from net investment income3 |  |  | (0.46 | ) |  |  | (0.91 | ) |  |  | (0.93 | ) |  |  | (0.97 | ) |  |  | (0.96 | ) |  |  | (0.92 | )
Net asset value, end of period |  | $ | 16.46 |  |  | $ | 16.27 |  |  | $ | 14.27 |  |  | $ | 16.88 |  |  | $ | 14.67 |  |  | $ | 15.51 |
Market price, end of period |  | $ | 15.17 |  |  | $ | 14.58 |  |  | $ | 13.14 |  |  | $ | 16.61 |  |  | $ | 14.22 |  |  | $ | 15.60 |
Total Return Applicable to Common Shareholders4 |  |  |  |
Based on net asset value |  |  | 4.27% | 5 |  |  | 21.64% |  |  |  | (10.35)% |  |  |  | 22.36% |  |  |  | 1.29% |  |  |  | 16.80% |
Based on market price |  |  | 7.24% | 5 |  |  | 18.37% |  |  |  | (16.10)% |  |  |  | 24.21% |  |  |  | (2.38)% |  |  |  | 26.02% |
Ratios to Average Net Assets Applicable to Common Shareholders |  |  |  |
Total expenses |  |  | 1.94% | 6 |  |  | 2.07% |  |  |  | 2.09% |  |  |  | 2.21% | 7 |  |  | 1.81% | 7 |  |  | 1.57% | 7
Total expenses after fees waived and paid indirectly |  |  | 1.81% | 6 |  |  | 1.94% |  |  |  | 1.96% |  |  |  | 2.12% | 7 |  |  | 1.66% | 7 |  |  | 1.35% | 7
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs8 |  |  | 1.56% | 6,9 |  |  | 1.63% | 9 |  |  | 1.60% | 9 |  |  | 1.72% | 7,9 |  |  | 1.39% | 7 |  |  | 1.15% | 7
Net investment income |  |  | 5.57% | 6 |  |  | 6.05% |  |  |  | 5.45% |  |  |  | 5.78% | 7 |  |  | 7.25% | 7 |  |  | 6.92% | 7
Distributions to AMPS Shareholders |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.01% |  |  |  | 0.13% |  |  |  | 0.15% |
Net investment income to Common Shareholders |  |  | 5.57% | 6 |  |  | 6.05% |  |  |  | 5.45% |  |  |  | 5.77% |  |  |  | 7.12% |  |  |  | 6.77% |
Supplemental Data |  |  |  |
Net assets applicable to Common Shareholders, end of period (000) |  | $ | 54,960 |  |  | $ | 54,327 |  |  | $ | 47,647 |  |  | $ | 56,331 |  |  | $ | 48,941 |  |  | $ | 51,708 |
AMPS outstanding at $25,000 liquidation preference, end of period (000) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  | $ | 17,850 |  |  | $ | 17,850 |
Asset coverage per AMPS at $25,000 liquidation preference, end of period |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  | $ | 93,546 |  |  | $ | 97,421 |
VRDP Shares outstanding at $100,000 liquidation value, end of period (000) |  | $ | 17,800 |  |  | $ | 17,800 |  |  | $ | 17,800 |  |  | $ | 17,800 |  |  |  | — |  |  |  | — |
Asset coverage per VRDP Shares at $100,000 liquidation value, end of period |  | $ | 408,763 |  |  | $ | 405,210 |  |  | $ | 367,678 |  |  | $ | 416,465 |  |  |  | — |  |  |  | — |
Borrowings outstanding, end of period (000) |  | $ | 16,236 |  |  | $ | 16,236 |  |  | $ | 16,756 |  |  | $ | 18,585 |  |  | $ | 16,276 |  |  | $ | 16,276 |
Asset coverage, end of period per $1,000 of borrowings |  | $ | 4,385 |  |  | $ | 4,346 |  |  | $ | 3,844 |  |  | $ | 4,031 |  |  | $ | 4,007 |  |  | $ | 4,177 |
Portfolio turnover rate |  |  | 6% |  |  |  | 18% |  |  |  | 32% |  |  |  | 36% |  |  |  | 25% |  |  |  | 47% |

| 1 |  | Based on average Common Shares outstanding.

| 2 |  | Amount is greater than $(0.005) per share.

| 3 |  | Distributions for annual periods determined in accordance with federal income tax regulations.

| 4 |  | Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

| 5 |  | Aggregate total return.

| 6 |  | Annualized.

| 7 |  | Does not reflect the effect of distributions to AMPS Shareholders.

| 8 |  | Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOB Trusts and VRDP Shares, respectively.

| 9 |  | For the six months ended February 28, 2015 and years ended August 31, 2014, August 31, 2013 and August 31, 2012, the total expense ratio after fees waived and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 1.23%, 1.27%, 1.27% and 1.42%, respectively.

See Notes to Financial Statements. |  |  |  |
|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 65

Financial Highlights |  | BlackRock Municipal Bond Trust (BBK)

|  | Six Months Ended February 28, 2015 (Unaudited) |  |  | Year Ended August 31, |
|  |  | 2014 |  |  | 2013 |  |  | 2012 |  |  | 2011 |  |  | 2010 |
Per Share Operating Performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net asset value, beginning of period |  | $ | 16.54 |  |  | $ | 14.18 |  |  | $ | 16.79 |  |  | $ | 14.48 |  |  | $ | 15.29 |  |  | $ | 13.23 |
Net investment income1 |  |  | 0.46 |  |  |  | 0.97 |  |  |  | 0.96 |  |  |  | 1.01 |  |  |  | 1.14 |  |  |  | 1.14 |
Net realized and unrealized gain (loss) |  |  | 0.45 |  |  |  | 2.43 |  |  |  | (2.46 | ) |  |  | 2.37 |  |  |  | (0.87 | ) |  |  | 1.97 |
Distributions to AMPS Shareholders from net investment income |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (0.01 | ) |  |  | (0.03 | ) |  |  | (0.03 | )
Net increase (decrease) from investment operations |  |  | 0.91 |  |  |  | 3.40 |  |  |  | (1.50 | ) |  |  | 3.37 |  |  |  | 0.24 |  |  |  | 3.08 |
Distributions to Common Shareholders from:2 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  |  | (0.50 | ) |  |  | (0.96 | ) |  |  | (0.97 | ) |  |  | (1.06 | ) |  |  | (1.05 | ) |  |  | (1.02 | )
Net realized gain |  |  | — |  |  |  | (0.08 | ) |  |  | (0.14 | ) |  |  | — |  |  |  | — |  |  |  | — |
Total distributions to Common Shareholders |  |  | (0.50 | ) |  |  | (1.04 | ) |  |  | (1.11 | ) |  |  | (1.06 | ) |  |  | (1.05 | ) |  |  | (1.02 | )
Net asset value, end of period |  | $ | 16.95 |  |  | $ | 16.54 |  |  | $ | 14.18 |  |  | $ | 16.79 |  |  | $ | 14.48 |  |  | $ | 15.29 |
Market price, end of period |  | $ | 16.52 |  |  | $ | 15.59 |  |  | $ | 13.49 |  |  | $ | 17.16 |  |  | $ | 14.86 |  |  | $ | 15.79 |
Total Return Applicable to Common Shareholders3 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Based on net asset value |  |  | 5.68% | 4 |  |  | 25.27% |  |  |  | (9.52)% |  |  |  | 23.96% |  |  |  | 2.02% |  |  |  | 24.13% |
Based on market price |  |  | 9.28% | 4 |  |  | 24.11% |  |  |  | (15.78)% |  |  |  | 23.45% |  |  |  | 1.38% |  |  |  | 22.90% |
Ratios to Average Net Assets Applicable to Common Shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total expenses |  |  | 1.72% | 5 |  |  | 1.84% |  |  |  | 1.82% |  |  |  | 1.69% | 6 |  |  | 1.33% | 6 |  |  | 1.29% | 6
Total expenses after fees waived and paid indirectly |  |  | 1.72% | 5 |  |  | 1.84% |  |  |  | 1.82% |  |  |  | 1.64% | 6 |  |  | 1.19% | 6 |  |  | 1.08% | 6
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs7 |  |  | 1.16% | 5 |  |  | 1.19% |  |  |  | 1.17% |  |  |  | 1.18% | 6,8 |  |  | 1.16% | 6 |  |  | 1.05% | 6
Net investment income |  |  | 5.53% | 5 |  |  | 6.29% |  |  |  | 5.85% |  |  |  | 6.39% | 6 |  |  | 8.15% | 6 |  |  | 8.08% | 6
Distributions to AMPS Shareholders |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.04% |  |  |  | 0.19% |  |  |  | 0.22% |
Net investment income to Common Shareholders |  |  | 5.53% | 5 |  |  | 6.29% |  |  |  | 5.85% |  |  |  | 6.35% |  |  |  | 7.96% |  |  |  | 7.86% |
Supplemental Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net assets applicable to Common Shareholders, end of period (000) |  | $ | 178,187 |  |  | $ | 173,798 |  |  | $ | 149,003 |  |  | $ | 176,216 |  |  | $ | 151,471 |  |  | $ | 159,216 |
AMPS outstanding at $25,000 liquidation preference, end of period (000) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  | $ | 79,900 |  |  | $ | 79,900 |
Asset coverage per AMPS at $25,000 liquidation preference, end of period |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  | $ | 72,394 |  |  | $ | 74,819 |
VMTP Shares outstanding at $100,000 liquidation value, end of period (000) |  | $ | 79,900 |  |  | $ | 79,900 |  |  | $ | 79,900 |  |  | $ | 79,900 |  |  |  | — |  |  |  | — |
Asset coverage per VMTP Shares at $100,000 liquidation value, end of period |  | $ | 323,013 |  |  | $ | 317,520 |  |  | $ | 286,487 |  |  | $ | 320,545 |  |  |  | — |  |  |  | — |
Borrowings outstanding, end of period (000) |  | $ | 19,495 |  |  | $ | 19,495 |  |  | $ | 17,039 |  |  | $ | 14,489 |  |  | $ | 7,399 |  |  | $ | 7,399 |
Asset coverage, end of period per $1,000 of borrowings |  | $ | 10,140 |  |  | $ | 9,915 |  |  | $ | 9,745 |  |  | $ | 13,162 |  |  | $ | 21,471 |  |  | $ | 22,518 |
Portfolio turnover rate |  |  | 17% |  |  |  | 32% |  |  |  | 32% |  |  |  | 46% |  |  |  | 27% |  |  |  | 51% |

| 1 |  | Based on average Common Shares outstanding.

| 2 |  | Distributions for annual periods determined in accordance with federal income tax regulations.

| 3 |  | Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

| 4 |  | Aggregate total return.

| 5 |  | Annualized.

| 6 |  | Does not reflect the effect of distributions to AMPS Shareholders.

| 7 |  | Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOB Trusts and VMTP Shares, respectively.

| 8 |  | For the year ended August 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 1.16%.

See Notes to Financial Statements. |  |  |  |
66 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Financial Highlights |  | Municipal Income Investment Quality Trust (BAF)

|  | Six Months Ended February 28, 2015 (Unaudited) |  |  | Year Ended August 31, |
|  |  | 2014 |  |  | 2013 |  |  | 2012 |  |  | 2011 |  |  | 2010 |
Per Share Operating Performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net asset value, beginning of period |  | $ | 15.97 |  |  | $ | 13.83 |  |  | $ | 16.53 |  |  | $ | 14.50 |  |  | $ | 15.08 |  |  | $ | 14.06 |
Net investment income1 |  |  | 0.41 |  |  |  | 0.83 |  |  |  | 0.81 |  |  |  | 0.83 |  |  |  | 0.91 |  |  |  | 0.94 |
Net realized and unrealized gain (loss) |  |  | 0.31 |  |  |  | 2.13 |  |  |  | (2.68 | ) |  |  | 2.09 |  |  |  | (0.58 | ) |  |  | 0.95 |
Distributions to AMPS Shareholders from net investment income |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (0.00 | )2 |  |  | (0.02 | ) |  |  | (0.02 | )
Net increase (decrease) from investment operations |  |  | 0.72 |  |  |  | 2.96 |  |  |  | (1.87 | ) |  |  | 2.92 |  |  |  | 0.31 |  |  |  | 1.87 |
Distributions to Common Shareholders from net investment income3 |  |  | (0.41 | ) |  |  | (0.82 | ) |  |  | (0.83 | ) |  |  | (0.89 | ) |  |  | (0.89 | ) |  |  | (0.85 | )
Net asset value, end of period |  | $ | 16.28 |  |  | $ | 15.97 |  |  | $ | 13.83 |  |  | $ | 16.53 |  |  | $ | 14.50 |  |  | $ | 15.08 |
Market price, end of period |  | $ | 14.71 |  |  | $ | 14.18 |  |  | $ | 12.82 |  |  | $ | 16.24 |  |  | $ | 13.92 |  |  | $ | 15.64 |
Total Return Applicable to Common Shareholders4 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Based on net asset value |  |  | 4.86% | 5 |  |  | 22.67% |  |  |  | (11.69)% |  |  |  | 20.76% |  |  |  | 2.62% |  |  |  | 13.93% |
Based on market price |  |  | 6.71% | 5 |  |  | 17.50% |  |  |  | (16.68)% |  |  |  | 23.59% |  |  |  | (5.01)% |  |  |  | 27.70% |
Ratios to Average Net Assets Applicable to Common Shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total expenses |  |  | 1.48% | 6 |  |  | 1.58% |  |  |  | 1.63% |  |  |  | 1.49% | 7 |  |  | 1.25% | 7 |  |  | 1.23% | 7
Total expenses after fees waived and paid indirectly |  |  | 1.48% | 6 |  |  | 1.58% |  |  |  | 1.63% |  |  |  | 1.49% | 7 |  |  | 1.23% | 7 |  |  | 1.14% | 7
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs8 |  |  | 1.00% | 6 |  |  | 1.03% |  |  |  | 1.03% |  |  |  | 1.06% | 7,9 |  |  | 1.09% | 7 |  |  | 0.97% | 7
Net investment income |  |  | 5.18% | 6 |  |  | 5.56% |  |  |  | 5.02% |  |  |  | 5.31% | 7 |  |  | 6.51% | 7 |  |  | 6.54% | 7
Distributions to AMPS Shareholders |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.02% |  |  |  | 0.12% |  |  |  | 0.14% |
Net investment income to Common Shareholders |  |  | 5.18% | 6 |  |  | 5.56% |  |  |  | 5.02% |  |  |  | 5.29% |  |  |  | 6.39% |  |  |  | 6.40% |
Supplemental Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net assets applicable to Common Shareholders, end of period (000) |  | $ | 142,475 |  |  | $ | 139,723 |  |  | $ | 120,962 |  |  | $ | 144,587 |  |  | $ | 126,783 |  |  | $ | 131,772 |
AMPS outstanding at $25,000 liquidation preference, end of period (000) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  | $ | 42,275 |  |  | $ | 42,275 |
Asset coverage per AMPS at $25,000 liquidation preference, end of period |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  | $ | 99,975 |  |  | $ | 102,926 |
VMTP Shares outstanding at $100,000 liquidation value, end of period (000) |  | $ | 42,200 |  |  | $ | 42,200 |  |  | $ | 42,200 |  |  | $ | 42,200 |  |  |  | — |  |  |  | — |
Asset coverage per VMTP Shares at $100,000 liquidation value, end of period |  | $ | 437,619 |  |  | $ | 431,097 |  |  | $ | 386,639 |  |  | $ | 442,624 |  |  |  | — |  |  |  | — |
Borrowings outstanding, end of period (000) |  | $ | 31,595 |  |  | $ | 32,345 |  |  | $ | 33,845 |  |  | $ | 36,497 |  |  | $ | 22,266 |  |  | $ | 32,196 |
Asset coverage, end of period per $1,000 of borrowings |  | $ | 5,509 |  |  | $ | 5,320 |  |  | $ | 4,574 |  |  | $ | 4,962 |  |  | $ | 6,694 |  |  | $ | 5,093 |
Portfolio turnover rate |  |  | 6% |  |  |  | 26% |  |  |  | 43% |  |  |  | 51% |  |  |  | 33% |  |  |  | 26% |

| 1 |  | Based on average Common Shares outstanding.

| 2 |  | Amount is greater than $(0.005) per share.

| 3 |  | Distributions for annual periods determined in accordance with federal income tax regulations.

| 4 |  | Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

| 5 |  | Aggregate total return.

| 6 |  | Annualized.

| 7 |  | Does not reflect the effect of distributions to AMPS Shareholders.

| 8 |  | Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOB Trusts and VMTP Shares, respectively.

| 9 |  | For the year ended August 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 1.05%.

See Notes to Financial Statements. |  |  |  |
|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 67

Financial Highlights |  | BlackRock Municipal Income Quality Trust (BYM)

|  | Six Months Ended February 28, 2015 (Unaudited) |  |  | Year Ended August 31, |
|  |  | 2014 |  |  | 2013 |  |  | 2012 |  |  | 2011 |  |  | 2010 |
Per Share Operating Performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net asset value, beginning of period |  | $ | 15.56 |  |  | $ | 13.46 |  |  | $ | 16.11 |  |  | $ | 14.09 |  |  | $ | 14.64 |  |  | $ | 13.55 |
Net investment income1 |  |  | 0.42 |  |  |  | 0.86 |  |  |  | 0.91 |  |  |  | 0.93 |  |  |  | 0.97 |  |  |  | 0.96 |
Net realized and unrealized gain (loss) |  |  | 0.25 |  |  |  | 2.16 |  |  |  | (2.62 | ) |  |  | 2.02 |  |  |  | (0.58 | ) |  |  | 1.00 |
Distributions to AMPS Shareholders from net investment income |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (0.00 | )2 |  |  | (0.02 | ) |  |  | (0.02 | )
Net increase (decrease) from investment operations |  |  | 0.67 |  |  |  | 3.02 |  |  |  | (1.71 | ) |  |  | 2.95 |  |  |  | 0.37 |  |  |  | 1.94 |
Distributions to Common Shareholders from net investment income3 |  |  | (0.43 | ) |  |  | (0.92 | ) |  |  | (0.94 | ) |  |  | (0.93 | ) |  |  | (0.92 | ) |  |  | (0.85 | )
Net asset value, end of period |  | $ | 15.80 |  |  | $ | 15.56 |  |  | $ | 13.46 |  |  | $ | 16.11 |  |  | $ | 14.09 |  |  | $ | 14.64 |
Market price, end of period |  | $ | 14.58 |  |  | $ | 13.96 |  |  | $ | 12.59 |  |  | $ | 16.73 |  |  | $ | 13.85 |  |  | $ | 15.26 |
Total Return Applicable to Common Shareholders4 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Based on net asset value |  |  | 4.62% | 5 |  |  | 23.69% |  |  |  | (11.13)% |  |  |  | 21.54% |  |  |  | 3.09% |  |  |  | 14.74% |
Based on market price |  |  | 7.60% | 5 |  |  | 18.65% |  |  |  | (19.96)% |  |  |  | 28.40% |  |  |  | (2.79)% |  |  |  | 18.42% |
Ratios to Average Net Assets Applicable to Common Shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total expenses |  |  | 1.44% | 6 |  |  | 1.55% |  |  |  | 1.55% |  |  |  | 1.46% | 7 |  |  | 1.25% | 7 |  |  | 1.15% | 7
Total expenses after fees waived and paid indirectly |  |  | 1.44% | 6 |  |  | 1.55% |  |  |  | 1.55% |  |  |  | 1.46% | 7 |  |  | 1.24% | 7 |  |  | 1.06% | 7
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs8 |  |  | 0.95% | 6 |  |  | 0.98% |  |  |  | 0.96% |  |  |  | 1.00% | 7,9 |  |  | 1.07% | 7 |  |  | 0.92% | 7
Net investment income |  |  | 5.40% | 6 |  |  | 5.89% |  |  |  | 5.77% |  |  |  | 6.12% | 7 |  |  | 7.15% | 7 |  |  | 6.85% | 7
Distributions to AMPS Shareholders |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.03% |  |  |  | 0.14% |  |  |  | 0.15% |
Net investment income to Common Shareholders |  |  | 5.40% | 6 |  |  | 5.89% |  |  |  | 5.77% |  |  |  | 6.09% |  |  |  | 7.01% |  |  |  | 6.70% |
Supplemental Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net assets applicable to Common Shareholders, end of period (000) |  | $ | 417,195 |  |  | $ | 410,776 |  |  | $ | 355,372 |  |  | $ | 424,785 |  |  | $ | 371,014 |  |  | $ | 384,563 |
AMPS outstanding at $25,000 liquidation preference, end of period (000) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  | $ | 137,250 |  |  | $ | 137,250 |
Asset coverage per AMPS at $25,000 liquidation preference, end of period |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  | $ | 92,580 |  |  | $ | 95,049 |
VMTP Shares outstanding at $100,000 liquidation value, end of period (000) |  | $ | 137,200 |  |  | $ | 137,200 |  |  | $ | 137,200 |  |  | $ | 137,200 |  |  |  | — |  |  |  | — |
Asset coverage per VMTP Shares at $100,000 liquidation value, end of period |  | $ | 404,078 |  |  | $ | 399,399 |  |  | $ | 359,018 |  |  | $ | 409,610 |  |  |  | — |  |  |  | — |
Borrowings outstanding, end of period (000) |  | $ | 106,052 |  |  | $ | 93,816 |  |  | $ | 114,948 |  |  | $ | 105,454 |  |  | $ | 85,964 |  |  | $ | 80,915 |
Asset coverage, end of period $1,000 of borrowings |  | $ | 4,934 |  |  | $ | 5,379 |  |  | $ | 4,092 |  |  | $ | 5,028 |  |  | $ | 5,316 |  |  | $ | 5,753 |
Portfolio turnover rate |  |  | 6% |  |  |  | 20% |  |  |  | 24% |  |  |  | 17% |  |  |  | 19% |  |  |  | 13% |

| 1 |  | Based on average Common Shares outstanding.

| 2 |  | Amount is greater than $(0.005) per share.

| 3 |  | Distributions for annual periods determined in accordance with federal income tax regulations.

| 4 |  | Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

| 5 |  | Aggregate total return.

| 6 |  | Annualized.

| 7 |  | Does not reflect the effect of distributions to AMPS Shareholders.

| 8 |  | Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOB Trusts and VMTP Shares, respectively.

| 9 |  | For the year ended August 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.99%.

See Notes to Financial Statements. |  |  |  |
68 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Financial Highlights |  | BlackRock Municipal Income Trust II (BLE)

|  | Six Months Ended February 28, 2015 (Unaudited) |  |  | Year Ended August 31, |
|  |  | 2014 |  |  | 2013 |  |  | 2012 |  |  | 2011 |  |  | 2010 |
Per Share Operating Performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net asset value, beginning of period |  | $ | 15.48 |  |  | $ | 13.32 |  |  | $ | 16.10 |  |  | $ | 13.96 |  |  | $ | 14.63 |  |  | $ | 12.78 |
Net investment income1 |  |  | 0.47 |  |  |  | 0.93 |  |  |  | 0.97 |  |  |  | 1.02 |  |  |  | 1.08 |  |  |  | 1.08 |
Net realized and unrealized gain (loss) |  |  | 0.32 |  |  |  | 2.22 |  |  |  | (2.72 | ) |  |  | 2.14 |  |  |  | (0.73 | ) |  |  | 1.77 |
Distributions to AMPS Shareholders from net investment income |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (0.01 | ) |  |  | (0.02 | ) |  |  | (0.03 | )
Net increase (decrease) from investment operations |  |  | 0.79 |  |  |  | 3.15 |  |  |  | (1.75 | ) |  |  | 3.15 |  |  |  | 0.33 |  |  |  | 2.82 |
Distributions to Common Shareholders from net investment income2 |  |  | (0.49 | ) |  |  | (0.99 | ) |  |  | (1.03 | ) |  |  | (1.01 | ) |  |  | (1.00 | ) |  |  | (0.97 | )
Net asset value, end of period |  | $ | 15.78 |  |  | $ | 15.48 |  |  | $ | 13.32 |  |  | $ | 16.10 |  |  | $ | 13.96 |  |  | $ | 14.63 |
Market price, end of period |  | $ | 15.53 |  |  | $ | 14.70 |  |  | $ | 13.20 |  |  | $ | 16.74 |  |  | $ | 14.13 |  |  | $ | 15.22 |
Total Return Applicable to Common Shareholders3 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Based on net asset value |  |  | 5.18% | 4 |  |  | 24.73% |  |  |  | (11.60)% |  |  |  | 23.25% |  |  |  | 2.70% |  |  |  | 22.83% |
Based on market price |  |  | 9.01% | 4 |  |  | 19.52% |  |  |  | (15.75)% |  |  |  | 26.61% |  |  |  | (0.07)% |  |  |  | 21.42% |
Ratios to Average Net Assets Applicable to Common Shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total expenses |  |  | 1.53% | 5 |  |  | 1.64% |  |  |  | 1.67% |  |  |  | 1.55% | 6 |  |  | 1.18% | 6 |  |  | 1.16% | 6
Total expenses after fees waived and paid indirectly |  |  | 1.53% | 5 |  |  | 1.64% |  |  |  | 1.67% |  |  |  | 1.48% | 6 |  |  | 1.10% | 6 |  |  | 1.08% | 6
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs7 |  |  | 0.97% | 5 |  |  | 1.01% |  |  |  | 1.00% |  |  |  | 0.96% | 6,8 |  |  | 1.01% | 6 |  |  | 0.99% | 6
Net investment income |  |  | 5.99% | 5 |  |  | 6.49% |  |  |  | 6.17% |  |  |  | 6.74% | 6 |  |  | 7.94% | 6 |  |  | 7.89% | 6
Distributions to AMPS Shareholders |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.03% |  |  |  | 0.17% |  |  |  | 0.20% |
Net investment income to Common Shareholders |  |  | 5.99% | 5 |  |  | 6.49% |  |  |  | 6.17% |  |  |  | 6.71% |  |  |  | 7.77% |  |  |  | 7.69% |
Supplemental Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net assets applicable to Common Shareholders, end of period (000) |  | $ | 370,324 |  |  | $ | 363,038 |  |  | $ | 312,329 |  |  | $ | 376,774 |  |  | $ | 325,713 |  |  | $ | 340,269 |
AMPS outstanding at $25,000 liquidation preference, end of period (000) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  | $ | 151,300 |  |  | $ | 151,300 |
Asset coverage per AMPS at $25,000 liquidation preference, end of period |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  | $ | 78,819 |  |  | $ | 81,226 |
VMTP Shares outstanding at $100,000 liquidation value, end of period (000) |  | $ | 151,300 |  |  | $ | 151,300 |  |  | $ | 151,300 |  |  | $ | 151,300 |  |  |  | — |  |  |  | — |
Asset coverage per VMTP Shares at $100,000 liquidation value, end of period |  | $ | 344,761 |  |  | $ | 339,946 |  |  | $ | 306,430 |  |  | $ | 349,025 |  |  |  | — |  |  |  | — |
Borrowings outstanding, end of period (000) |  | $ | 68,692 |  |  | $ | 69,692 |  |  | $ | 73,531 |  |  | $ | 88,876 |  |  | $ | 43,451 |  |  | $ | 39,252 |
Asset coverage, end of period per $1,000 of borrowings |  | $ | 6,391 |  |  | $ | 6,285 |  |  | $ | 5,248 |  |  | $ | 5,239 |  |  | $ | 8,496 |  |  | $ | 9,669 |
Portfolio turnover rate |  |  | 5% |  |  |  | 16% |  |  |  | 17% |  |  |  | 24% |  |  |  | 16% |  |  |  | 29% |

| 1 |  | Based on average Common Shares outstanding.

| 2 |  | Distributions for annual periods determined in accordance with federal income tax regulations.

| 3 |  | Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

| 4 |  | Aggregate total return.

| 5 |  | Annualized.

| 6 |  | Does not reflect the effect of distributions to AMPS Shareholders.

| 7 |  | Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOB Trusts and VMTP Shares, respectively.

| 8 |  | For the year ended August 28, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.94%.

See Notes to Financial Statements. |  |  |  |
|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 69

Financial Highlights |  | BlackRock MuniHoldings Investment Quality Fund (MFL)

|  | Six Months Ended February 28, 2015 (Unaudited) |  |  | Year Ended August 31, |
|  |  | 2014 |  |  | 2013 |  |  | 2012 |  |  | 2011 |  |  | 2010 |
Per Share Operating Performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net asset value, beginning of period |  | $ | 15.46 |  |  | $ | 13.27 |  |  | $ | 15.96 |  |  | $ | 14.00 |  |  | $ | 14.69 |  |  | $ | 13.57 |
Net investment income1 |  |  | 0.45 |  |  |  | 0.89 |  |  |  | 0.87 |  |  |  | 0.86 |  |  |  | 0.95 |  |  |  | 0.96 |
Net realized and unrealized gain (loss) |  |  | 0.23 |  |  |  | 2.16 |  |  |  | (2.66 | ) |  |  | 2.02 |  |  |  | (0.71 | ) |  |  | 1.04 |
Distributions to AMPS Shareholders from net investment income |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (0.02 | ) |  |  | (0.03 | )
Net increase (decrease) from investment operations |  |  | 0.68 |  |  |  | 3.05 |  |  |  | (1.79 | ) |  |  | 2.88 |  |  |  | 0.22 |  |  |  | 1.97 |
Distributions to Common Shareholders from net investment income2 |  |  | (0.43 | ) |  |  | (0.86 | ) |  |  | (0.90 | ) |  |  | (0.92 | ) |  |  | (0.91 | ) |  |  | (0.85 | )
Net asset value, end of period |  | $ | 15.71 |  |  | $ | 15.46 |  |  | $ | 13.27 |  |  | $ | 15.96 |  |  | $ | 14.00 |  |  | $ | 14.69 |
Market price, end of period |  | $ | 14.53 |  |  | $ | 13.92 |  |  | $ | 12.59 |  |  | $ | 16.13 |  |  | $ | 13.84 |  |  | $ | 14.65 |
Total Return Applicable to Common Shareholders3 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Based on net asset value |  |  | 4.70% | 4 |  |  | 24.24% |  |  |  | (11.70)% |  |  |  | 21.22% |  |  |  | 2.01% |  |  |  | 15.22% |
Based on market price |  |  | 7.55% | 4 |  |  | 17.91% |  |  |  | (17.11)% |  |  |  | 23.93% |  |  |  | 1.12% |  |  |  | 23.46% |
Ratios to Average Net Assets Applicable to Common Shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total expenses |  |  | 1.51% | 5 |  |  | 1.64% |  |  |  | 1.71% |  |  |  | 1.87% |  |  |  | 1.37% | 6 |  |  | 1.17% | 6
Total expenses after fees waived and paid indirectly |  |  | 1.47% | 5 |  |  | 1.57% |  |  |  | 1.62% |  |  |  | 1.80% |  |  |  | 1.30% | 6 |  |  | 1.09% | 6
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs7 |  |  | 0.94% | 5,8 |  |  | 1.19% | 8 |  |  | 1.29% | 8 |  |  | 1.39% | 8 |  |  | 1.14% | 6 |  |  | 1.01% | 6
Net investment income |  |  | 5.75% | 5 |  |  | 6.18% |  |  |  | 5.55% |  |  |  | 5.76% |  |  |  | 7.03% | 6 |  |  | 6.85% | 6
Distributions to AMPS Shareholders |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.18% |  |  |  | 0.21% |
Net investment income to Common Shareholders |  |  | 5.75% | 5 |  |  | 6.18% |  |  |  | 5.55% |  |  |  | 5.76% |  |  |  | 6.85% |  |  |  | 6.64% |
Supplemental Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net assets applicable to Common Shareholders, end of period (000) |  | $ | 593,910 |  |  | $ | 584,690 |  |  | $ | 501,810 |  |  | $ | 602,780 |  |  | $ | 528,173 |  |  | $ | 553,367 |
AMPS outstanding at $25,000 liquidation preference, end of period (000) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  | $ | 274,650 |
Asset coverage per AMPS at $25,000 liquidation preference, end of period |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  | $ | 75,371 |
VRDP Shares outstanding at $100,000 liquidation value, end of period (000) |  | $ | 274,600 |  |  | $ | 274,600 |  |  | $ | 274,600 |  |  | $ | 274,600 |  |  | $ | 274,600 |  |  |  | — |
Asset coverage per VRDP Shares at $100,000 liquidation value, end of period |  | $ | 316,282 |  |  | $ | 312,924 |  |  | $ | 282,742 |  |  | $ | 319,152 |  |  | $ | 292,343 |  |  |  | — |
Borrowings outstanding, end of period (000) |  | $ | 85,628 |  |  | $ | 89,157 |  |  | $ | 95,959 |  |  | $ | 131,323 |  |  | $ | 74,965 |  |  | $ | 71,068 |
Asset coverage, end of period per $1,000 of borrowings |  | $ | 7,936 |  |  | $ | 7,558 |  |  | $ | 6,229 |  |  | $ | 5,590 |  |  | $ | 8,046 |  |  | $ | 8,786 |
Portfolio turnover rate |  |  | 6% |  |  |  | 25% |  |  |  | 59% |  |  |  | 44% |  |  |  | 32% |  |  |  | 38% |

| 1 |  | Based on average Common Shares outstanding.

| 2 |  | Distributions for annual periods determined in accordance with federal income tax regulations.

| 3 |  | Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

| 4 |  | Aggregate total return.

| 5 |  | Annualized.

| 6 |  | Does not reflect the effect of distributions to AMPS Shareholders.

| 7 |  | Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOB Trusts and VRDP Shares, respectively.

| 8 |  | For the six months ended February 28, 2015 and years ended August 31, 2014, August 31, 2013, and August 31, 2012 the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.97% 0.95%, 0.92% and 0.99%, respectively.

See Notes to Financial Statements. |  |  |  |
70 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Financial Highlights |  | BlackRock MuniVest Fund, Inc. (MVF)

|  | Six Months Ended February 28, 2015 (Unaudited) |  |  | Year Ended August 31, |
|  |  | 2014 |  |  | 2013 |  |  | 2012 |  |  | 2011 |  |  | 2010 |
Per Share Operating Performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net asset value, beginning of period |  | $ | 10.27 |  |  | $ | 9.14 |  |  | $ | 10.68 |  |  | $ | 9.55 |  |  | $ | 10.01 |  |  | $ | 8.98 |
Net investment income1 |  |  | 0.31 |  |  |  | 0.63 |  |  |  | 0.67 |  |  |  | 0.69 |  |  |  | 0.73 |  |  |  | 0.73 |
Net realized and unrealized gain (loss) |  |  | 0.10 |  |  |  | 1.18 |  |  |  | (1.50 | ) |  |  | 1.16 |  |  |  | (0.47 | ) |  |  | 0.97 |
Distributions to AMPS Shareholders from net investment income |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (0.01 | ) |  |  | (0.02 | ) |  |  | (0.02 | )
Net increase (decrease) from investment operations |  |  | 0.41 |  |  |  | 1.81 |  |  |  | (0.83 | ) |  |  | 1.84 |  |  |  | 0.24 |  |  |  | 1.68 |
Distributions to Common Shareholders from net investment income2 |  |  | (0.32 | ) |  |  | (0.68 | ) |  |  | (0.71 | ) |  |  | (0.71 | ) |  |  | (0.70 | ) |  |  | (0.65 | )
Net asset value, end of period |  | $ | 10.36 |  |  | $ | 10.27 |  |  | $ | 9.14 |  |  | $ | 10.68 |  |  | $ | 9.55 |  |  | $ | 10.01 |
Market price, end of period |  | $ | 10.25 |  |  | $ | 9.83 |  |  | $ | 8.91 |  |  | $ | 11.28 |  |  | $ | 9.73 |  |  | $ | 10.38 |
Total Return Applicable to Common Shareholders3 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Based on net asset value |  |  | 4.16% | 4 |  |  | 20.70% |  |  |  | (8.39)% |  |  |  | 19.85% |  |  |  | 2.90% |  |  |  | 19.31% |
Based on market price |  |  | 7.66% | 4 |  |  | 18.50% |  |  |  | (15.45)% |  |  |  | 24.24% |  |  |  | 1.11% |  |  |  | 24.69% |
Ratios to Average Net Assets Applicable to Common Shareholders |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total expenses |  |  | 1.40% | 5 |  |  | 1.49% |  |  |  | 1.54% |  |  |  | 1.51% | 6 |  |  | 1.28% | 6 |  |  | 1.22% | 6
Total expenses after fees waived and paid indirectly |  |  | 1.40% | 5 |  |  | 1.49% |  |  |  | 1.54% |  |  |  | 1.51% | 6 |  |  | 1.28% | 6 |  |  | 1.22% | 6
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs7 |  |  | 0.88% | 5 |  |  | 0.91% |  |  |  | 0.91% |  |  |  | 0.98% | 6,8 |  |  | 1.05% | 6 |  |  | 1.03% | 6
Net investment income |  |  | 6.01% | 5 |  |  | 6.53% |  |  |  | 6.43% |  |  |  | 6.79% | 6 |  |  | 7.93% | 6 |  |  | 7.71% | 6
Distributions to AMPS Shareholders |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.05% |  |  |  | 0.18% |  |  |  | 0.19% |
Net investment income to Common Shareholders |  |  | 6.01% | 5 |  |  | 6.53% |  |  |  | 6.43% |  |  |  | 6.74% |  |  |  | 7.75% |  |  |  | 7.52% |
Supplemental Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net assets applicable to Common Shareholders, end of period (000) |  | $ | 663,142 |  |  | $ | 656,922 |  |  | $ | 584,718 |  |  | $ | 679,207 |  |  | $ | 602,234 |  |  | $ | 625,195 |
AMPS outstanding at $25,000 liquidation preference, end of period (000) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  | $ | 243,825 |  |  | $ | 243,825 |
Asset coverage per AMPS at $25,000 liquidation preference, end of period |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  | $ | 86,749 |  |  | $ | 89,106 |
VMTP Shares outstanding at $100,000 liquidation value, end of period (000) |  | $ | 243,800 |  |  | $ | 243,800 |  |  | $ | 243,800 |  |  | $ | 243,800 |  |  |  | — |  |  |  | — |
Asset coverage per VMTP Shares at $100,000 liquidation value, end of period |  | $ | 372,003 |  |  | $ | 369,451 |  |  | $ | 339,835 |  |  | $ | 378,592 |  |  |  | — |  |  |  | — |
Borrowings outstanding, end of period (000) |  | $ | 149,066 |  |  | $ | 145,111 |  |  | $ | 149,085 |  |  | $ | 199,256 |  |  | $ | 173,251 |  |  | $ | 179,120 |
Asset coverage, end of period per $1,000 of borrowings |  | $ | 5,449 |  |  | $ | 5,527 |  |  | $ | 4,922 |  |  | $ | 4,409 |  |  | $ | 4,476 |  |  | $ | 4,490 |
Portfolio turnover rate |  |  | 10% |  |  |  | 14% |  |  |  | 11% |  |  |  | 11% |  |  |  | 10% |  |  |  | 25% |

| 1 |  | Based on average Common Shares outstanding.

| 2 |  | Distributions for annual periods determined in accordance with federal income tax regulations.

| 3 |  | Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

| 4 |  | Aggregate total return.

| 5 |  | Annualized.

| 6 |  | Does not reflect the effect of distributions to AMPS Shareholders.

| 7 |  | Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred to TOB Trusts and VMTP Shares, respectively.

| 8 |  | For the year ended August 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.96%.

See Notes to Financial Statements. |  |  |  |
|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 71

Notes to Financial Statements (Unaudited) |  |

1. Organization:

The following are registered under the 1940 Act, as closed-end management investment companies and referred to herein collectively as the “Trusts:”

Trust Name |  | Herein Referred To As |  | Organized |  | Diversification Classification
BlackRock Municipal Bond Investment Trust |  | BIE |  | Delaware |  | Non-diversified
BlackRock Municipal Bond Trust |  | BBK |  | Delaware |  | Diversified
BlackRock Municipal Income Investment Quality Trust |  | BAF |  | Delaware |  | Non-diversified
BlackRock Municipal Income Quality Trust |  | BYM |  | Delaware |  | Diversified
BlackRock Municipal Income Trust II |  | BLE |  | Delaware |  | Diversified
BlackRock MuniHoldings Investment Quality Fund |  | MFL |  | Massachusetts |  | Non-diversified
BlackRock MuniVest Fund, Inc. |  | MVF |  | Maryland |  | Non-diversified

The Boards of Trustees/Directors of the Trusts are collectively referred to throughout this report as the “Board of Trustees” or the “Board,” and the trustees/directors thereof are collectively referred to throughout this report as “Trustees.” The Trusts determine and make available for publication the NAVs of their Common Shares on a daily basis.

2. Significant Accounting Policies:

The Trusts’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Trust is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Trusts:

Valuation: The Trust’s investments are valued at fair value as of the close of trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the report date). U.S. GAAP defines fair value as the price the Trusts would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trusts determine the fair values of their financial instruments at market value using independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to provide oversight of the pricing function for the Trusts for all financial instruments.

Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments. Financial futures contracts traded on exchanges are valued at their last sale price. Investments in open-end registered investment companies are valued at NAV each business day.

In the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Investments”). When determining the price for Fair Value Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Trust might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant consistent with the principles of fair value measurement. The pricing of all Fair Value Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Segregation and Collateralization: In cases where a Trust enters into certain investments (e.g., financial futures contracts), or certain borrowings (e.g., TOB transactions) that would be “senior securities” for 1940 Act purposes, the Trust may segregate or designate on its books and records cash or liquid securities having a market value at least equal to the amount of the Trust’s future obligations under such investments or borrowings. Doing so allows the investment or borrowing to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Trust may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.

Distributions: Distributions from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend date. The character and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Distributions to Preferred Shareholders are accrued and determined as described in Note 9.

72 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Notes to Financial Statements (continued) |  |

Deferred Compensation Plan: Under the Deferred Compensation Plan (‘the Plan”) approved by each Trust’s Board, the independent Trustees (“Independent Trustees”) may 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 certain other BlackRock Closed-End Funds selected by the Independent Trustees. This has the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in certain other BlackRock Closed-End Funds.

The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Trust. Deferred compensation liabilities are included in officer’s and trustees’ fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Trusts until such amounts are distributed in accordance with the Plan.

Other: Expenses directly related to a Trust are charged to that Trust. Other operating expenses shared by several funds are prorated among those funds on the basis of relative net assets or other appropriate methods.

The Trusts have an arrangement with the custodian whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statements of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

3. Securities and Other Investments:

Zero-Coupon Bonds: The Trusts may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.

Forward Commitments and When-Issued Delayed Delivery Securities: The Trusts may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Trusts may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Trusts may be required to pay more at settlement than the security is worth. In addition, the Trusts are not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Trusts assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the Trusts’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions, which is shown in the Schedules of Investments.

Municipal Bonds Transferred to TOB Trusts: The Trusts leverage their assets through the use of TOB transactions. The Trusts transfer municipal bonds into a special purpose entity (“TOB Trust”). Other funds managed by the investment advisor may also contribute municipal bonds to a TOB Trust into which a Trust has contributed bonds. A TOB Trust typically issues two classes of beneficial interests: short-term floating rate certificates (“TOB Trust Certificates”), which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to the participating funds that contributed the municipal bonds to the TOB Trust. If multiple funds participate in the same TOB Trust, the rights and obligations under the TOB Residual will be shared among the funds ratably in proportion to their participation in the TOB Trust.

The municipal bonds transferred to a TOB Trust typically are high grade municipal bonds. In certain cases, when municipal bonds transferred are lower grade municipal bonds, the TOB transaction includes a credit enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by a credit enhancement provider. The Trusts, as TOB Residual holders, would be responsible for the payment of the credit enhancement fee and for reimbursement of any payments of principal and interest made by the credit enhancement provider.

The TOB Residuals held by a Trust include the right of a Trust (subject to the non-occurrence of certain termination events enumerated below, and a specified number of days’ prior notice), to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates at par plus accrued interest. Thereafter, that Trust may withdraw a corresponding share of the municipal bonds from the TOB Trust.

The TOB Trust may also be collapsed without the consent of a Trust, upon the occurrence of tender option termination events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs may include the bankruptcy or default of the issuer of the municipal bond, a substantial downgrade in credit quality of the issuer of the municipal bond, failure of any scheduled payment of principal or interest on the underlying bonds, and a judgment or ruling that interest on the municipal bond is subject to federal income taxation. MTEs may include, among other things, a failed remarketing of the TOB Trust Certificates, the inability of the TOB Trust to obtain renewal of the liquidity support agreement and a substantial decline in the market value of the municipal bond. Upon the occurrence of a TOTE or an MTE, the TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the remarketing agent and the Liquidity Provider (defined below). In the case of an MTE, after the payment of fees, the TOB Trust Certificate holders would be paid senior to the TOB Residual holders (i.e., the Trusts). In contrast, in the case of a TOTE, after payment of fees, the TOB Trust Certificate holders and TOB Residual holders would be paid equally in proportion to the respective face values of their certificates. During the six months ended February 28, 2015, no TOB Trusts in which the Trusts participated were terminated without the consent of the Trusts.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 73

Notes to Financial Statements (continued) |  |

The cash received by the TOB Trust from the sale of the TOB Trust Certificates, less transaction expenses, is paid to a Trust. The Trusts typically invest the cash received in additional municipal bonds. Each Trust’s transfer of the municipal bonds to a TOB Trust is considered a secured borrowing for financial reporting purposes; therefore, the municipal bonds deposited into a TOB Trust are presented in the Trusts’ Schedules of Investments and the TOB Trust Certificates are shown in other liabilities in the Statements of Assets and Liabilities. The carrying amount of the Trusts’ payable to the holder of the TOB Trust Certificates, as reported in the Statements of Assets and Liabilities as TOB Trust Certificates, approximates its fair value.

The Trusts may invest in TOB Trusts on either a non-recourse or recourse basis. TOB Trusts are typically supported by a liquidity facility provided by a bank or other financial institution (the “Liquidity Provider”) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment from the Liquidity Provider of par plus accrued interest on any business day prior to the occurrence of the termination events described above. When a Trust invests in TOB Trusts on a non-recourse basis, and the Liquidity Provider is required to make a payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion of the municipal securities held in the TOB Trust and then fund, on a net basis, the balance, if any, of the amount owed under the liquidity facility over the liquidation proceeds (the “Liquidation Shortfall”). If a Trust invests in a TOB Trust on a recourse basis, the Trust will typically enter into a reimbursement agreement with the Liquidity Provider where the Trust is required to repay the Liquidity Provider the amount of any Liquidation Shortfall. As a result, a Trust investing in a recourse TOB Trust will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB Trust, these losses will be shared ratably, including the maximum potential amounts owed by the Trusts at February 28, 2015, in proportion to their participation in the TOB Trust. The recourse TOB Trusts are identified in the Schedules of Investments including the maximum potential amounts owed by the Trusts at February 28, 2015.

Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by the Trusts on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB Trust are shown as interest expense, fees and amortization of offering costs in the Statements of Operations. The TOB Trust Certificates have interest rates that generally reset weekly and their holders have the option to tender such certificates to the TOB Trust for redemption at par and any accrued interest at each reset date. At February 28, 2015, the aggregate value of the underlying municipal bonds transferred to the TOB Trusts, the related liability for TOB Trust Certificates and the range of interest rates on the liability for TOB Trust Certificates were as follows:

|  | Underlying Municipal Bonds Transferred to TOB Trust |  |  | Liability for TOB Trust Certificates |  |  | Range of Interest Rates |
BIE |  | $ | 31,793,502 |  |  | $ | 16,235,837 |  |  |  | 0.02% - 0.27% |
BBK |  | $ | 36,196,406 |  |  | $ | 19,494,759 |  |  |  | 0.02% - 0.22% |
BAF |  | $ | 59,611,932 |  |  | $ | 31,594,766 |  |  |  | 0.02% - 0.24% |
BYM |  | $ | 193,547,949 |  |  | $ | 106,051,858 |  |  |  | 0.02% - 0.30% |
BLE |  | $ | 122,435,412 |  |  | $ | 68,691,599 |  |  |  | 0.02% - 0.22% |
MFL |  | $ | 170,819,245 |  |  | $ | 85,627,593 |  |  |  | 0.02% - 0.27% |
MVF |  | $ | 303,906,003 |  |  | $ | 149,065,588 |  |  |  | 0.02% - 0.20% |

For the six months ended February 28, 2015, the Trusts’ average TOB Trust Certificates outstanding and the daily weighted average interest rate, including fees, were as follows:

|  | Average TOB Trust Certificates Outstanding |  |  | Daily Weighted Average Interest Rate |
BIE |  | $ | 16,235,837 |  |  |  | 0.63% |
BBK |  | $ | 19,494,759 |  |  |  | 0.62% |
BAF |  | $ | 31,901,395 |  |  |  | 0.67% |
BYM |  | $ | 96,734,473 |  |  |  | 0.60% |
BLE |  | $ | 68,691,599 |  |  |  | 0.59% |
MFL |  | $ | 87,091,891 |  |  |  | 0.66% |
MVF |  | $ | 145,474,298 |  |  |  | 0.59% |

Should short-term interest rates rise, the Trusts’ investments in TOB transactions may adversely affect the Trusts’ net investment income and dividends to Common Shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB Trust may adversely affect the Trusts’ NAVs per share.

While the Trusts’ investment policies and restrictions expressly permit investments in inverse floating rate securities such as TOB Residuals, they generally do not allow the Trusts to borrow money for purposes of making investments. The Trusts’ management believes that the Trusts’ restrictions on borrowings do not apply to the secured borrowings. For accounting purposes, the Trusts’ transfer of municipal bonds to a TOB Trust are deemed secured borrowings.

74 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Notes to Financial Statements (continued) |  |

4. Derivative Financial Instruments:

The Trusts engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Trusts and/or to economically hedge their exposure to certain risks, such as interest rate risk. These contracts may be transacted on an exchange.

Financial Futures Contracts: The Trusts invest in long and/or short positions in financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk). Financial futures contracts are agreements between the Trusts and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, financial futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date.

Upon entering into a financial futures contract, the Trusts are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Securities deposited as initial margin are designated on the Schedules of Investments and cash deposited, if any, is recorded on the Statements of Assets and Liabilities as cash pledged for financial futures contracts. Pursuant to the contract, the Trusts agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin. Variation margin is recorded by the Trusts as unrealized appreciation or depreciation and, if applicable, as a receivable or payable for variation margin in the Statements of Assets and Liabilities.

When the contract is closed, the Trusts record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

The following is a summary of the Trusts’ derivative financial instruments categorized by risk exposure:

Fair Values of Derivative Financial Instruments as of February 28, 2015 |
|  | Statements of Assets and Liabilities Location |  | Value |
|  |  | Derivative Liabilities |
|  |  | BIE |  |  | BBK |  |  | BAF |  |  | BYM |
Interest rate contracts |  | Net unrealized appreciation/ depreciation1 |  | $ | (29,259 | ) |  | $ | (168,378 | ) |  | $ | (78,393 | ) |  | $ | (239,309 | )

|  |  |  | Value |
|  |  |  | BLE |  |  |  |  | MFL |  |  |  |  | MVF |
|  | Statements of Assets and Liabilities Location |  | Derivative Assets |  |  | Derivative Liabilities |  |  |  |  | Derivative Assets |  |  | Derivative Liabilities |  |  |  |  | Derivative Assets |  |  | Derivative Liabilities |
Interest rate contracts |  | Net unrealized appreciation/ depreciation1 |  | $ | 23,195 |  |  |  | — |  |  |  |  |  | — |  |  | $ | (331,236 | ) |  |  |  | $ | 53,719 |  |  |  | — |

| 1 |  | Includes cumulative appreciation/depreciation on financial futures contracts as reported in the Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

The Effect of Derivative Financial Instruments in the Statements of Operations Six Months Ended February 28, 2015 |
|  | Net Realized Loss From |  |  |  |  | Net Change in Unrealized Appreciation/Depreciation on |
|  | BIE |  |  | BBK |  |  | BAF |  |  | BYM |  |  |  |  | BIE |  |  | BBK |  |  | BAF |  |  | BYM |
Interest rate contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial futures contracts |  | $ | (95,430 | ) |  | $ | (350,246 | ) |  | $ | (235,826 | ) |  | $ | (1,181,037 | ) |  |  |  | $ | (21,615 | ) |  | $ | (139,075 | ) |  | $ | (59,920 | ) |  | $ | (162,230 | )
|  | BLE |  |  | MFL |  |  | MVF |  |  |  |  |  |  |  | BLE |  |  | MFL |  |  | MVF |  |  |  |
Interest rate contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial futures contracts |  | $ | (724,036 | ) |  | $ | (948,676 | ) |  | $ | (1,232,611 | ) |  |  |  |  |  |  |  | $ | 65,761 |  |  | $ | (257,555 | ) |  | $ | 128,037 |  |  |  |  |

For the six months ended February 28, 2015, the average quarterly balances of outstanding derivative financial instruments were as follows:

|  | BIE |  |  | BBK |  |  | BAF |  |  | BYM |  |  | BLE |  |  | MFL |  |  | MVF |
Financial futures contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average notional value of contracts - short |  | $ | 6,689,836 |  |  | $ | 33,083,039 |  |  | $ | 18,220,953 |  |  | $ | 65,952,949 |  |  | $ | 29,222,984 |  |  | $ | 77,660,070 |  |  | $ | 59,422,094 |

Counterparty Credit Risk: A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Trusts since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Trust does not have a contractual right of offset against a clearing broker or

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 75

Notes to Financial Statements (continued) |  |

clearinghouse in the event of a default (including the bankruptcy or insolvency) of the clearing broker or clearinghouse. Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Trusts.

5. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate, for 1940 Act purposes of BlackRock, Inc. (“BlackRock”).

Each Trust entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Trusts’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of each Trust’s portfolio and provides the necessary personnel, facilities, equipment and certain other services to the operations of each Trust. For such services, each Trust pays the Manager a monthly fee based on a percentage of each Trust’s average weekly net assets, except MFL and MVF, which are based on average daily net assets, at the following annual rates:

|  | BIE |  |  | BBK |  |  | BAF |  |  | BYM |  |  | BLE |  |  | MFL |  |  | MVF |
Investment advisory fee |  |  | 0.65% |  |  |  | 0.65% |  |  |  | 0.55% |  |  |  | 0.55% |  |  |  | 0.55% |  |  |  | 0.55% |  |  |  | 0.50% |

Average weekly net assets and average daily net assets are the average weekly or the average daily value of each Trust’s total assets minus its total accrued liabilities.

The Manager voluntarily agreed to waive a portion of the investment advisory fees or other expenses, with respect to BIE as a percentage of its average weekly net assets of 0.08%. With respect to MFL, the Manager voluntarily agreed to waive its investment advisory fees on the proceeds of Preferred Shares and TOB Trusts that exceed 35% of its total assets minus the sum of its accrued liabilities. The amounts waived are included in fees waived by Manager in the Statements of Operations. For the six months ended February 28, 2015, the amounts included in fees waived by Manager were as follows:

BIE |  | $ | 35,232 |
MFL |  | $ | 118,984 |

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Trust pays to the Manager indirectly through its investments in affiliated money market funds. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with each Trust’s investments in other affiliated investment companies, if any. These amounts are included in fees waived by Manager in the Statements of Operations. For the six months ended February 28, 2015, the amounts waived were as follows:

|  | BIE |  |  | BBK |  |  | BAF |  |  | BYM |  |  | BLE |  |  | MFL |  |  | MVF |
Amounts waived |  | $ | 39 |  |  | $ | 119 |  |  | $ | 23 |  |  | $ | 133 |  |  | $ | 243 |  |  | $ | 77 |  |  | $ | 990 |

These voluntary waivers may be reduced or discontinued at any time without notice.

Certain officers and/or Trustees of the Trusts are officers and/or directors of BlackRock or its affiliates. The Trusts reimburse the Manager for a portion of the compensation paid to the Trusts’ Chief Compliance Officer, which is included in officer and trustees in the Statements of Operations.

6. Purchases and Sales:

For the six months ended February 28, 2015, purchases and sales of investments, excluding short-term securities, were as follows:

|  | BIE |  |  | BBK |  |  | BAF |  |  | BYM |  |  | BLE |  |  | MFL |  |  | MVF |
Purchases |  | $ | 6,619,845 |  |  | $ | 48,585,025 |  |  | $ | 13,784,011 |  |  | $ | 45,889,597 |  |  | $ | 37,127,897 |  |  | $ | 69,146,451 |  |  | $ | 124,006,611 |
Sales |  | $ | 5,188,010 |  |  | $ | 47,459,331 |  |  | $ | 12,605,785 |  |  | $ | 36,868,194 |  |  | $ | 29,429,905 |  |  | $ | 53,439,278 |  |  | $ | 100,636,800 |

7. Income Tax Information:

It is the Trusts’ policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of their taxable income to their shareholders. Therefore, no federal income tax provision is required.

Each Trust files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Trusts’ U.S. federal tax returns remains open for each of the four years ended August 31, 2014. The statutes of limitations on each Trust’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Trusts’ as of February 28, 2015, inclusive of the open tax return years and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Trusts’ financial statements.

76 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Notes to Financial Statements (continued) |  |

As of August 31, 2014, the Trusts had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

Expires August 31, |  | BIE |  |  | BBK |  |  | BAF |  |  | BYM |  |  | BLE |  |  | MFL |  |  | MVF |
2016 |  |  | — |  |  |  | — |  |  |  | — |  |  | $ | 3,216,104 |  |  |  | — |  |  |  | — |  |  |  | — |
2017 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 6,430,212 |  |  | $ | 2,066,643 |  |  | $ | 1,863,647 |  |  | $ | 7,618,622 |
2018 |  | $ | 150,549 |  |  |  | — |  |  |  | — |  |  |  | 2,209,430 |  |  |  | 4,366,226 |  |  |  | 11,734,707 |  |  |  | — |
2019 |  |  | 718,157 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,448,693 |  |  |  | — |  |  |  | 5,276,524 |
No expiration date1 |  |  | 1,415,064 |  |  | $ | 985,165 |  |  | $ | 3,781,281 |  |  |  | 5,270,835 |  |  |  | 1,908,534 |  |  |  | 22,597,148 |  |  |  | 10,709,257 |
Total |  | $ | 2,283,770 |  |  | $ | 985,165 |  |  | $ | 3,781,281 |  |  | $ | 17,126,581 |  |  | $ | 10,790,096 |  |  | $ | 36,195,502 |  |  | $ | 23,604,403 |

| 1 |  | Must be utilized prior to losses subject to expiration.

As of February 28, 2015, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

|  | BIE |  |  | BBK |  |  | BAF |  |  | BYM |  |  | BLE |  |  | MFL |  |  | MVF |
Tax cost |  | $ | 63,115,668 |  |  | $ | 235,390,213 |  |  | $ | 163,935,841 |  |  | $ | 490,983,347 |  |  | $ | 468,347,358 |  |  | $ | 780,610,456 |  |  | $ | 787,599,677 |
Gross unrealized appreciation |  | $ | 10,051,560 |  |  | $ | 28,416,965 |  |  | $ | 22,458,415 |  |  | $ | 62,240,893 |  |  | $ | 55,455,148 |  |  | $ | 101,000,262 |  |  | $ | 108,341,804 |
Gross unrealized depreciation |  |  | (160,245 | ) |  |  | (973,016 | ) |  |  | (303,195 | ) |  |  | (2,485,415 | ) |  |  | (4,719,785 | ) |  |  | (1,353,527 | ) |  |  | (6,182,960 | )
Net unrealized appreciation |  | $ | 9,891,315 |  |  | $ | 27,443,949 |  |  | $ | 22,155,220 |  |  | $ | 59,755,478 |  |  | $ | 50,735,363 |  |  | $ | 99,646,735 |  |  | $ | 102,158,844 |

8. Principal Risks:

Each Trust invests a substantial amount of their assets in issuers located in a single state or limited number of states. Investment percentages in specific states or U.S. territories are presented in the Schedules of investments.

Many municipalities insure repayment of their bonds, which may reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.

In the normal course of business, the Trusts invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Trusts may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Trusts; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency interest rate and price fluctuations. Similar to issuer credit risk, the Trusts may be exposed to counterparty credit risk, or the risk that an entity with which the Trusts have unsettled or open transactions may fail to or be unable to perform on its commitments. The Trusts manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Trusts to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Trusts’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Trusts.

The Trusts invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. See the Schedules of Investments for these securities and/or derivatives. Changes in market interest rates or economic conditions, may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Trusts may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

As of February 28, 2015, BIE, BBK, BAF and BYM, MFL invested a significant portion of their assets in securities in the county/city/special district/school district sector. BIE, BAF, BYM, BLE, MFL and MVF invested a significant portion of their assets in securities in the transportation sector. BBK and MVF invested a significant portion of their assets in securities in the health sector. Changes in economic conditions affecting such sectors would have a greater impact on the Trusts and could affect the value, income and/or liquidity of positions in such securities.

The Trusts may hold a significant amount of bonds subject to calls by the issuers at defined dates and prices. When bonds are called by issuers and the Trusts reinvest the proceeds received, such investments may be in securities with lower yields than the bonds originally held, and correspondingly, could adversely impact the yield and total return performance of a Trust.

On December 10, 2013, regulators published final rules implementing section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Volcker Rule”), which prohibit banking entities from engaging in proprietary trading of certain instruments and limit such entities’ investments in, and relationships with, “covered funds” as defined in the Volcker Rule. The Volcker Rule precludes banking entities and their affiliates from sponsoring existing TOB Trusts as such Trusts have been structured to date. In response to these restrictions, market participants have developed a new structure for TOB Trusts designed to ensure that no banking entity is sponsoring the TOB Trust for purposes of the Volcker Rule. In such a structure, certain responsibilities that previously belonged to the sponsor bank will be performed by the Trusts. The Trusts may utilize the service providers in meeting these responsibilities. This structure remains untested. It is possible that regulators could take positions that could limit the market for such newly structured TOB Trust trans-

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 77

Notes to Financial Statements (continued) |  |

actions or the Trusts’ ability to hold TOB Residuals. Under the new TOB Trust structure, the Trusts will have certain additional duties and responsibilities, which may give rise to certain additional risks including compliance, securities law and operational risks.

There can be no assurance that the Trusts can successfully enter into restructured TOB Trust transactions in order to refinance their existing TOB Residual holdings prior to the compliance date for the Volcker Rule, which may require that the Trusts unwind existing TOB Trusts. There can be no assurance that alternative forms of leverage will be available to the Trusts and any alternative forms of leverage may be more or less advantageous to the Trusts than existing TOB leverage.

TOB transactions constitute an important component of the municipal bond market. Accordingly, implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments could adversely affect the Trusts. The ultimate impact of these rules on the TOB market and the overall municipal market is not yet certain.

9. Capital Share Transactions:

Each of BIE, BBK, BAF, BYM and BLE is authorized to issue an unlimited number of shares, including Preferred Shares, par value $0.001 per share, all of which were initially classified as Common Shares. The Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares, including AMPS, without approval of Common Shareholders.

MFL is authorized to issue an unlimited number of shares, including 1 million Preferred Shares, including AMPS, par value $0.10 per share.

MVF is authorized to issue 160 million shares, 150 million of which were initially classified as Common Shares, par value $0.10 per share and 10 million of which were classified as Preferred Shares, including AMPS, par value $0.10 per share.

Common Shares

For the periods shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:

|  | BIE |  |  | BBK |  |  | BAF |  |  | BYM |  |  | BLE |  |  | MFL |  |  | MVF |
Six months ended February 28, 2015 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 17,405 |  |  |  | — |  |  |  | 29,649 |
Year ended August 31, 2014 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 10,827 |  |  |  | — |  |  |  | — |

Preferred Shares

Each Trust’s Preferred Shares rank prior to the Trust’s Common Shares as to the payment of dividends by the Trust and distribution of assets upon dissolution or liquidation of the Trust. The 1940 Act prohibits the declaration of any dividend on the Trust’s Common Shares or the repurchase of the Trust’s Common Shares if the Trust fails to maintain the asset coverage of at least 200% of the liquidation preference of the outstanding Preferred Shares. In addition, pursuant to the Preferred Shares’ governing instrument, the Trust is restricted from declaring and paying dividends on classes of shares ranking junior to or on parity with the Preferred Shares or repurchasing such shares if the Trust fails to declare and pay dividends on the Preferred Shares, redeem any Preferred Shares required to be redeemed under the Preferred Shares governing instrument or comply with the basic maintenance amount requirement of the agencies rating the Preferred Shares.

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 (one vote per share) as a single class. However, the 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’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.

VRDP Shares

BIE and MFL (collectively, the “VRDP Trusts”), have issued Series W-7 VRDP Shares, $100,000 liquidation value per share, in a privately negotiated offering. The VRDP Shares were offered to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act of 1933 as amended, (the “Securities Act”) and include a liquidity feature, pursuant to a liquidity agreement, that allows the holders of VRDP Shares to have their shares purchased by the liquidity provider in the event of a failed remarketing. VRDP Trusts are required to redeem the VRDP Shares owned by the liquidity provider after six months of continuous, unsuccessful remarketing. Upon the occurrence of the first unsuccessful remarketing, the VRDP Trusts are required to segregate liquid assets to fund the redemption. The VRDP Shares are subject to certain restrictions on transfer.

For the six months ended February 28, 2015, the VRDP Shares outstanding of each Trust were as follows:

|  | Issue Date |  |  | Shares Issued |  |  | Aggregate Principal |  |  | Maturity Date |
BIE |  |  | 9/15/11 |  |  |  | 178 |  |  | $ | 17,800,000 |  |  |  | 10/01/41 |
MFL |  |  | 6/30/11 |  |  |  | 2,746 |  |  | $ | 274,600,000 |  |  |  | 7/01/41 |

78 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Notes to Financial Statements (continued) |  |

The VRDP Trusts entered into a fee agreement with the liquidity provider that may require an initial commitment and a per annum liquidity fee payable to the liquidity provider. These fees, if applicable, are shown as liquidity fees in the Statements of Operations.

The fee agreements between BIE and MFL and the liquidity provider are scheduled to expire, unless renewed or terminated in advance, as follows:

|  | BIE |  |  | MFL |
Expiration date |  |  | 6/04/2015 |  |  |  | 4/19/2017 |

In the event the fee agreement is not renewed or is terminated in advance, and the VRDP Trusts do not enter into a fee agreement with an alternate liquidity provider, the VRDP Shares will be subject to mandatory purchase by the liquidity provider prior to the termination of the fee agreement. The VRDP Trusts are required to redeem any VRDP Shares purchased by the liquidity provider six months after the purchase date. Immediately after the purchase of any VRDP Shares by the liquidity provider, the VRDP Trusts are required to begin to segregate liquid assets with the VRDP Trusts’ custodians to fund the redemption. There is no assurance the VRDP Trusts will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.

Each VRDP Trust is required to redeem its VRDP Shares on the maturity date, unless earlier redeemed or repurchased. Six months prior to the maturity date, the VRDP Trusts are required to begin to segregate liquid assets with the Trust’s custodian to fund the redemption. In addition, VRDP Trusts are required to redeem certain of its outstanding VRDP Shares if they fail to maintain certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, the VRDP Shares may be redeemed, in whole or in part, at any time at the option of VRDP Trusts. The redemption price per VRDP Share is equal to the liquidation value per share plus any outstanding unpaid dividends.

Dividends on the VRDP Shares are payable monthly at a variable rate set weekly by the remarketing agent. Such dividend rates are generally based upon a spread over a base rate and cannot exceed a maximum rate. In the event of a failed remarketing, the dividend rate of the VRDP Shares will be reset to a maximum rate. The maximum rate is determined based on, among other things, the long-term preferred share rating assigned to the VRDP Shares and the length of time that the VRDP Shares fail to be remarketed. At the date of issuance, the VRDP Shares were assigned a long-term rating of Aaa from Moody’s and AAA from Fitch. Subsequent to the issuance of the VRDP Shares, Moody’s completed a review of its methodology for rating securities issued by registered closed-end funds. As of February 28, 2015, the VRDP Shares were assigned a long-term rating of Aa1 from Moody’s under its new ratings methodology. The VRDP Shares continue to be assigned a long-term rating of AAA from Fitch.

The short-term ratings on the VRDP Shares are directly related to the short-term ratings of the liquidity provider for such VRDP Shares. Changes in the credit quality of the liquidity provider could cause a change in the short-term credit ratings of the VRDP Shares as rated by Moody’s, Fitch and/or S&P. A change in the short-term credit rating of the liquidity provider or the VRDP Shares may adversely affect the dividend rate paid on such shares, although the dividend rate paid on the VRDP Shares is not directly related based upon either short-term rating. As of February 28, 2015, the short-term ratings of the liquidity provider and the VRDP Shares for BIE were P1, F1 and A1/watch negative as rated by Moody’s, Fitch and/or S&P, respectively, which is within the two highest rating categories. The liquidity provider may be terminated prior to the scheduled termination date if the liquidity provider fails to maintain short-term debt ratings in one of the two highest rating categories. The short term ratings on the VRDP Shares of MFL were withdrawn by Moody’s, Fitch and/or S&P at the commencement of the special rate period, as described below. The S&P short-term ratings of the liquidity provider (Barclays) and the VRDP Shares of Barclay VRDP Funds are under review for possible downgrade.

For financial reporting purposes, the VRDP Shares are considered debt of the issuer; therefore, the liquidation value, which approximates fair value, of the VRDP Shares is recorded as a liability in the Statements of Assets and Liabilities. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the dividends accrued and paid on the VRDP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The VRDP Shares are treated as equity for tax purposes. Dividends paid to holders of the VRDP Shares are generally classified as tax-exempt income for tax-reporting purposes.

The VRDP Trusts may incur remarketing fees of 0.10% on the aggregate principal amount of all the VRDP Shares, which, if any, are included in remarketing fees on Preferred Shares in the Statements of Operations. All of BIE’s VRDP Shares that were tendered for remarketing during the six months ended February 28, 2015 were successfully remarketed.

For the six months ended February 28, 2015, the annualized dividend rates for the VRDP Shares were as follows

|  | BIE |  |  | MFL |
Rate |  |  | 0.12% |  |  |  | 0.90% |

On April 17, 2014, MFL commenced a three-year term ending April 19, 2017 (“special rate period”) with respect to its VRDP Shares. The implementation of the special rate period resulted in a mandatory tender of the VRDP Shares prior to the commencement of the special rate period. The mandatory tender event was not the result of a failed remarketing.

The liquidity and fee agreements remain in effect for the duration of the special rate period and the VRDP Shares are still subject to mandatory redemption by the MFL on maturity date. MFL’s VRDP Shares will not be remarketed or subject to optional or mandatory tender events during such time. During the special rate period, MFL is required to maintain the same asset coverage, basic maintenance amount and leverage requirements for the VRDP Shares.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 79

Notes to Financial Statements (continued) |  |

During the special rate period, MFL will pay dividends monthly based on the sum of Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Index and a percentage per annum based on the long-term ratings assigned to the VRDP Shares. The short-term ratings of MFL’s VRDP Shares were withdrawn by Moody’s, Fitch and/or S&P. Short-term ratings may be re-assigned upon the termination of the special rate period when MFL’s VRDP Shares revert back to remarketable securities.

If MFL redeems the VRDP Shares on a date that is one year or more before the end of the special rate period and MFL’s VRDP Shares are rated above A1/A by Moody’s and Fitch respectively, then such redemption is subject to a redemption premium payable to the holder of the VRDP Shares based on the time remaining in the special rate period, subject to certain exceptions for redemptions that are required to maintain minimum asset coverage requirements. After April 19, 2017, the holder of MFL’s VRDP Shares and MFL may mutually agree to extend the special rate period. If the special rate period is not extended, MFL’s VRDP Shares will revert back to remarketable securities and will be remarketed and available for purchase by qualified institutional investors.

For the six months ended February 28, 2015, VRDP Shares issued and outstanding of each Trust remained constant.

VMTP Shares

BBK, BAF, BYM, BLE and MVF (collectively, the “VMTP Trusts”), have issued Series W-7 VMTP Shares, $100,000 liquidation value per share, in a privately negotiated offering and sale of VMTP Shares exempt from registration under the Securities Act.

For the six months ended February 28, 2015, the VMTP Shares outstanding of each Trust were as follows:

|  | Issue Date |  |  | Shares Issued |  |  | Aggregate Principal |  |  | Term Date |
BBK |  |  | 12/16/11 |  |  |  | 799 |  |  | $ | 79,900,000 |  |  |  | 12/31/15 |
BAF |  |  | 12/16/11 |  |  |  | 422 |  |  | $ | 42,200,000 |  |  |  | 12/31/15 |
BYM |  |  | 12/16/11 |  |  |  | 1,372 |  |  | $ | 137,200,000 |  |  |  | 12/31/15 |
BLE |  |  | 12/16/11 |  |  |  | 1,513 |  |  | $ | 151,300,000 |  |  |  | 12/31/15 |
MVF |  |  | 12/16/11 |  |  |  | 2,438 |  |  | $ | 243,800,000 |  |  |  | 12/31/15 |

Each VMTP Trust is required to redeem its VMTP Shares on the term date, unless earlier redeemed or repurchased or unless extended. There is no assurance that the term of a Trust’s VMTP Shares will be extended or that a Trust’s VMTP Shares will be replaced with any other preferred shares or other form of leverage upon the redemption or repurchase of the VMTP Shares. Six months prior to term date, each VMTP Trust is required to begin to segregate liquid assets with the Trust’s custodian to fund the redemption. In addition, each VMTP Trust is required to redeem certain of its outstanding VMTP Shares if it fails to maintain certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, a Trust’s VMTP Shares may be redeemed, in whole or in part, at any time at the option of the Trust. The redemption price per VMTP Share is equal to the liquidation value per share plus any outstanding unpaid dividends and applicable redemption premium. If the Trusts redeem the VMTP Shares on a date that is one year or more prior to the term date and the VMTP Shares are rated above A1/A+ by Moody’s and Fitch, respectively, then such redemption is subject to a prescribed redemption premium (up to 3% of the liquidation preference) payable to the holder of the VMTP Shares based on the time remaining to the term date, subject to certain exceptions for redemptions that are required to maintain minimum asset coverage requirements. The VMTP Shares are subject to certain restrictions on transfer, and a Trust may also be required to register the VMTP Shares for sale under the Securities Act under certain circumstances. In addition, amendments to the VMTP governing document generally require the consent of the holders of VMTP Shares.

Dividends on the VMTP Shares are declared daily and payable monthly at a variable rate set weekly at a fixed rate spread to the SIFMA Municipal Swap Index. The fixed spread is determined based on the long-term preferred share rating assigned to the VMTP Shares by Moody’s and Fitch. At the date of issuance, the VMTP Shares were assigned long-term ratings of Aaa from Moody’s and AAA from Fitch. Subsequent to the issuance of the VMTP Shares, Moody’s completed a review of its methodology for rating securities issued by registered closed-end funds. As of February 28, 2015, the VMTP Shares were assigned a long-term rating of Aa1 from Moody’s under its new rating methodology. The VMTP Shares continue to be assigned a long-term rating of AAA from Fitch. The dividend rate on the VMTP Shares is subject to a step-up spread if the Trusts fail to comply with certain provisions, including, among other things, the timely payment of dividends, redemptions or gross-up payments, and maintaining certain asset coverage and leverage requirements.

For the six months ended February 28, 2015, the average annualized dividend rates for the VMTP Shares were as follows:

|  | BBK |  |  | BAF |  |  | BYM |  |  | BLE |  |  | MVF |
Rate |  |  | 1.03% |  |  |  | 1.02% |  |  |  | 1.02% |  |  |  | 1.02% |  |  |  | 1.02% |

For financial reporting purposes, the VMTP Shares are considered debt of the issuer; therefore the liquidation value, which approximates fair value, of the VMTP Shares is recorded as a liability in the Statements of Assets and Liabilities. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the dividends accrued and paid on the VMTP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The VMTP Shares are treated as equity for tax purposes. Dividends paid to holders of the VMTP Shares are generally classified as tax-exempt income for tax-reporting purposes.

80 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Notes to Financial Statements (concluded) |  |

For the six months ended February 28, 2015, VMTP Shares issued and outstanding of each Trust remained constant.

Offering Costs: The Trusts incurred costs in connection with the issuance of VRDP Shares and/or VMTP Shares. For VRDP Shares, these costs were recorded as a deferred charge and will be amortized over the 30-year life of the VRDP Shares with the exception of upfront fees paid to the liquidity provider which were amortized over the life of the liquidity agreement. For VMTP Shares, these costs were recorded as a deferred charge and will be amortized over the 3-year life of the VMTP Shares. Amortization of these costs is included in interest expense, fees and amortization of offering costs in the Statements of Operations.

10. Subsequent Events:

Management’s evaluation of the impact of all subsequent events on the Trusts’ financial statements was completed through the date the financial statements were issued and the following items were noted:

The Trusts paid a net investment income dividend in the following amounts per share on April 1, 2015 to Common Shareholders of record on March 13, 2015:

|  | Common Dividend Per Share |
BIE |  | $ | 0.0760 |
BBK |  | $ | 0.0820 |
BAF |  | $ | 0.0685 |
BYM |  | $ | 0.0715 |
BLE |  | $ | 0.0790 |
MFL |  | $ | 0.0715 |
MVF |  | $ | 0.0535 |

Additionally, the Trusts declared a net investment income dividend on April 1, 2015 payable to Common Shareholders of record on April 15, 2015 for the same amounts noted above.

The dividends declared on Preferred Shares for the period March 1, 2015 to March 31, 2015 were as follows:

|  | Preferred Shares |  |  | Series |  |  | Dividend Declared |
BIE |  |  | VRDP Shares |  |  |  | W-7 |  |  | $ | 1,663 |
BBK |  |  | VMTP Shares |  |  |  | W-7 |  |  | $ | 69,217 |
BAF |  |  | VMTP Shares |  |  |  | W-7 |  |  | $ | 36,558 |
BYM |  |  | VMTP Shares |  |  |  | W-7 |  |  | $ | 118,856 |
BLE |  |  | VMTP Shares |  |  |  | W-7 |  |  | $ | 131,071 |
MFL |  |  | VRDP Shares |  |  |  | W-7 |  |  | $ | 209,900 |
MVF |  |  | VMTP Shares |  |  |  | W-7 |  |  | $ | 211,204 |

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 81

Officers and Trustees |  |

Richard E. Cavanagh, Chairman of the Board and Trustee

Karen P. Robards, Vice Chairperson of the Board, Chairperson of the Audit Committee and Trustee

Michael J. Castellano, Trustee and Member of the Audit Committee

Frank J. Fabozzi, Trustee and Member of the Audit Committee

Kathleen F. Feldstein, Trustee

James T. Flynn, Trustee and Member of the Audit Committee

Jerrold B. Harris, Trustee

R. Glenn Hubbard, Trustee

W. Carl Kester, Trustee and Member of the Audit Committee

Barbara G. Novick, Trustee

John M. Perlowski, Trustee, President and Chief Executive Officer

Robert W. Crothers, Vice President

Neal Andrews, Chief Financial Officer

Jay Fife, Treasurer

Charles Park, Chief Compliance Officer

Janey Ahn, Secretary

Effective September 5, 2014, Brendan Kyne resigned as a Vice President of the Trusts.

Effective December 31, 2014, Paul L. Audet and Henry Gabbay resigned as Trustees of the Trusts. Effective December 31, 2014, Barbara G. Novick and John M. Perlowski were appointed to serve as Trustees of the Trusts.

Investment Advisor BlackRock Advisors, LLC Wilmington, DE 19809 |  | Transfer Agent Common Shares: Computershare Trust Company, N.A. Canton, MA 02021 |  | VRDP Liquidity Providers Bank of America, N.A.1 New York, NY 10036 Barclays Bank PLC 2 New York, NY 10019 |  | Accounting Agent State Street Bank and Trust Company Boston, MA 02116 |  | Legal Counsel Skadden, Arps, Slate, Meagher & Flom LLP New York, NY 10036
Custodian State Street Bank and Trust Company Boston, MA 02110 |  | VRDP Tender and Paying Agent and VMTP Redemption and Paying Agent The Bank of New York Mellon New York, NY 10289 |  | VRDP Remarketing Agents Merrill Lynch, Pierce, Fenner & Smith Incorporated 1 New York, NY 10036 Barclays Capital Inc.2 New York, NY 10019 |  | Independent Registered Public Accounting Firm Deloitte & Touche LLP Boston, MA 02116 |  | Address of the Trusts 100 Bellevue Parkway Wilmington, DE 19809

| 1 |  | For MFL.

| 2 |  | For BIE.

82 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

Additional Information |  |

Dividend Policy

Each Trust’s dividend policy is to distribute all or a portion of its net investment income to its shareholders on a monthly basis. In order to provide shareholders with a more stable level of distributions, the Trusts may at times pay out less than the entire amount of net investment income earned in any particular month and may at times in any particular month pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the distributions paid by the Trusts for any particular month may be more or less than the amount of net investment income earned by the Trusts during such month. The Trusts’ current accumulated but undistributed net investment income, if any, is disclosed in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

General Information

The Trusts do not make available copies of their Statements of Additional Information because the Trusts’ shares are not continuously offered, which means that the Statement of Additional Information of each Trust has not been updated after completion of the respective Trust’s offerings and the information contained in each Trust’s Statement of Additional Information may have become outdated.

During the period, there were no material changes in the Trusts’ investment objectives or policies or to the Trusts’ charters or by-laws that would delay or prevent a change of control of the Trusts that were not approved by the shareholders or in the principal 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’ portfolios.

Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website in this report.

Electronic Delivery

Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual shareholder reports by enrolling in the electronic delivery program. Electronic copies of shareholder reports are available on BlackRock’s website.

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.

Householding

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 “householding” 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 call (800) 882-0052.

Availability of Quarterly Schedule of Investments

The Trusts file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Trusts’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330. The Trusts’ Forms N-Q may also be obtained upon request and without charge by calling (800) 882-0052.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to portfolio securities is available upon request and without charge (1) by calling (800) 882-0052; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Trusts voted proxies relating to securities held in the Trusts’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 882-0052 and (2) on the SEC’s website at http://www.sec.gov.

Availability of Trust Updates

BlackRock will update performance and certain other data for the Trusts on a monthly basis on its website in the “Closed-end Funds” section of http://www.blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to check the website for updated performance information and the release of other material information about the Trusts. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website into this report.

|  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  | 83

Additional Information (concluded) |  |

Shelf Offering Program

From time-to-time, each Trust may seek to raise additional equity capital through an equity shelf program (a “Shelf Offering”). In a Shelf Offering, the Trust may, subject to market conditions, raise additional equity capital by issuing new Common Shares from time to time in varying amounts at a net price at or above the Trust’s net asset value (“NAV”) per Common Share (calculated within 48 hours of pricing). While any such Shelf Offering may allow a Trust to pursue additional investment opportunities without the need to sell existing portfolio investments, it could also entail risks — including that the issuance of additional Common Shares may limit the extent to which the Common Shares are able to trade at a premium to NAV in the secondary market. The Trusts have not filed a registration statement with respect to any Shelf Offerings. This report is not an offer to sell Trust Common Shares and is not a solicitation of an offer to buy Trust Common Shares. If the Trust files a registration statement with respect to any Shelf Offering, the prospectus contained therein will contain more complete information about the Trust and should be read carefully before investing.

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

84 |  | SEMI-ANNUAL REPORT |  | FEBRUARY 28, 2015 |  |

This report is intended for current holders. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Trusts have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares, and the risk that fluctuations in short-term interest rates may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.

CEF-NTL-7-2/15-SAR |  |

Item 2 – |  | Code of Ethics – Not Applicable to this semi-annual report
Item 3 – |  | Audit Committee Financial Expert – Not Applicable to this semi-annual report
Item 4 – |  | Principal Accountant Fees and Services – Not Applicable to this semi-annual report
Item 5 – |  | Audit Committee of Listed Registrants – Not Applicable to this semi-annual report
Item 6 – |  | Investments
|  | (a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.
|  | (b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
Item 7 – |  | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable to this semi-annual report
Item 8 – |  | Portfolio Managers of Closed-End Management Investment Companies
|  | (a) Not Applicable to this semi-annual report
|  | (b) As of the date of this filing, there have been no changes in any of the portfolio managers identified in the most recent annual report on Form N-CSR.
Item 9 – |  | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable
Item 10 – |  | Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.
Item 11 – |  | Controls and Procedures
|  | (a) – The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
|  | (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) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12 – |  | Exhibits attached hereto
|  | (a)(1) – Code of Ethics – Not Applicable to this semi-annual report
|  | (a)(2) – Certifications – Attached hereto
|  | (a)(3) – Not Applicable
|  | (b) – Certifications – Attached hereto

2

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

BlackRock Municipal Income Trust II

By: |  | /s/ John M. Perlowski |  |
|  | John M. Perlowski
|  | Chief Executive Officer (principal executive officer) of
|  | BlackRock Municipal Income Trust II

Date: May 1, 2015

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

By: |  | /s/ John M. Perlowski |  |
|  | John M. Perlowski
|  | Chief Executive Officer (principal executive officer) of
|  | BlackRock Municipal Income Trust II
Date: May 1, 2015 |  |
By: |  | /s/ Neal J. Andrews |  |
|  | Neal J. Andrews
|  | Chief Financial Officer (principal financial officer) of
|  | BlackRock Municipal Income Trust II

Date: May 1, 2015

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