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<SEC-DOCUMENT>0000930413-05-003428.txt : 20050505
<SEC-HEADER>0000930413-05-003428.hdr.sgml : 20050505
<ACCEPTANCE-DATETIME>20050505151811
ACCESSION NUMBER:		0000930413-05-003428
CONFORMED SUBMISSION TYPE:	N-CSRS
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20050228
FILED AS OF DATE:		20050505
DATE AS OF CHANGE:		20050505
EFFECTIVENESS DATE:		20050505

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BLACKROCK INSURED MUNICIPAL INCOME TRUST
		CENTRAL INDEX KEY:			0001181187
		IRS NUMBER:				816105962
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0831

	FILING VALUES:
		FORM TYPE:		N-CSRS
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-21178
		FILM NUMBER:		05803318

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

	MAIL ADDRESS:	
		STREET 1:		100 BELLEVUE PARKWAY
		STREET 2:		MUTUAL FUND DEPARTMENT
		CITY:			WILMINGTON
		STATE:			DE
		ZIP:			19809

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BLACKROCK MUNICIPAL INCOME TRUST III
		DATE OF NAME CHANGE:	20020819
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-CSRS
<SEQUENCE>1
<FILENAME>c36072_ncsrs.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
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<center>
  <FONT face="serif">UNITED STATES </FONT><BR>
  <FONT face="serif">SECURITIES AND EXCHANGE COMMISSION </FONT><BR>
  <FONT face="serif">Washington, D.C. 20549 </FONT><BR>
</center>
<P align="center">
<B><FONT size=4 face="serif">FORM N-CSR </FONT></B></P>
<P align="center">
<B><FONT face="serif">CERTIFIED SHAREHOLDER REPORT OF REGISTERED <br>
MANAGEMENT INVESTMENT COMPANIES </FONT></B></P>
<P align="center">
<FONT face="serif">Investment Company Act file number: <u>&nbsp;&nbsp;&nbsp;811-21178&nbsp;&nbsp;&nbsp;</u><BR>
</FONT></P>
<p align="center"><FONT face="serif"><u>&nbsp;&nbsp;&nbsp;BlackRock Insured Municipal
      Income Trust</u></FONT><u>&nbsp;&nbsp;&nbsp;</u><BR>
    <FONT face="serif">(Exact name of registrant as specified in charter)</FONT><BR>
</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD width=50% align=center>
<FONT face="serif">100 Bellevue Parkway, Wilmington, DE</FONT>&nbsp;
	</TD>
	<TD align=center>
<FONT face="serif">19809</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD width="50%">
<HR noshade size=1>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=50% align=right>
      <center>
        <FONT face="serif">(Address of principal executive offices)</FONT>&nbsp;
	    </center></TD>
	<TD align=right>
      <center>
        <FONT face="serif">(Zip code)</FONT>&nbsp;
	    </center></TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">Robert S. Kapito, President </FONT><br>
<BR>
<FONT face="sans-serif">BlackRock Insured </FONT><B><FONT face="sans-serif"> </FONT></B><FONT face="sans-serif">Municipal
Income Trust </FONT><B><FONT face="serif"> </FONT></B><BR>
<FONT face="serif">40 East 52nd Street, New York, NY 10022</FONT></P>
<hr size="1" noshade>
<center>
  <FONT face="serif">(Name and address of agent for service) </FONT>
</center>
<P>
<FONT face="serif">Registrant's telephone number, including area code: </FONT><U><FONT face="serif">888-825-2257</FONT></U><FONT face="serif">_____________ </FONT></P>
<P>
<FONT face="serif">Date of fiscal year end:___</FONT><U><FONT face="serif">August
31, 2005</FONT></U><FONT face="serif">______________________________</FONT></P>
<P>
<FONT face="serif">Date of reporting period:__</FONT><U><FONT face="serif"> February 28, 2005</FONT></U><FONT face="serif">_________________________________</FONT></P>

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

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


<P>
<B><FONT face="serif">Item 1. Reports to Shareholders.</FONT></B><FONT face="serif"> <br>
</FONT><FONT face="serif">The
Registrant&#146;s semi-annual report transmitted to shareholders pursuant to
Rule 30e-1 under the Investment Company Act of 1940 is as follows: </FONT></P>
<br><P><FONT size=1 face="sans-serif">FIXED INCOME &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LIQUIDITY &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EQUITIES &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ALTERNATIVES
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BLACKROCK SOLUTIONS</FONT></P>
<hr align="left" width="500" size="1" noshade>

<blockquote>
  <p><FONT size=5 face="sans-serif">BlackRock</FONT><BR>
    <FONT size=5 face="sans-serif">Closed-End Funds</FONT><BR>
  <FONT size=5 face="sans-serif">Semi-Annual Report</FONT></p>
  <p> <FONT size=2 face="sans-serif">February 28, 2005 (UNAUDITED)</FONT></p>
</blockquote>
<hr align="left" width="500" size=5 noshade>
<blockquote>
  <p><FONT size=2 face="sans-serif">BlackRock Insured Municipal Income Trust (BYM)</FONT><br>
    <BR>
    <FONT size=2 face="sans-serif">BlackRock Municipal Bond Trust (BBK)</FONT><BR>
      <FONT size=2 face="sans-serif"><br>
    BlackRock Municipal Income Trust II (BLE)</FONT><BR>
      <FONT size=2 face="sans-serif"><br>
      BlackRock California Insured Municipal Income
    Trust (BCK)</FONT><BR>
    <FONT size=2 face="sans-serif"><br>
    BlackRock California Municipal Bond Trust (BZA)</FONT><BR>
    <FONT size=2 face="sans-serif"><br>
    BlackRock California Municipal Income Trust II
    (BCL)</FONT><BR>
    <FONT size=2 face="sans-serif"><br>
    BlackRock Florida Insured Municipal Income Trust
    (BAF)</FONT><BR>
    <FONT size=2 face="sans-serif"><br>
    BlackRock Florida Municipal Bond Trust (BIE)</FONT><BR>
    <FONT size=2 face="sans-serif"><br>
    BlackRock Maryland Municipal Bond Trust (BZM)</FONT><BR>
    <FONT size=2 face="sans-serif"><br>
    BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT><BR>
    <FONT size=2 face="sans-serif"><br>
    BlackRock New York Insured Municipal Income Trust
    (BSE)</FONT><BR>
    <FONT size=2 face="sans-serif"><br>
    BlackRock New York Municipal Bond Trust (BQH)</FONT><BR>
    <FONT size=2 face="sans-serif"><br>
    BlackRock New York Municipal Income Trust II (BFY)</FONT><BR>
    <FONT size=2 face="sans-serif"><br>
    BlackRock Virginia Municipal Bond Trust (BHV)</FONT></p>
</blockquote>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><BR>
</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td><FONT size=1 face="sans-serif">NOT FDIC INSURED</FONT><BR>
      <FONT size=1 face="sans-serif">MAY LOSE VALUE</FONT><BR>
      <FONT size=1 face="sans-serif">NO BANK GUARANTEE</FONT></td>
    <td><div align="right"><img src="c36072_covx2x1.jpg" border=0></div></td>
  </tr>
</table>
<HR noshade  width="100%" size=4>
<p align="left" style="page-break-before:always"></p>
<page>
<P align="center">
<B><FONT face="serif">TABLE OF CONTENTS</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Letter to Shareholders</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">1</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Trusts&#146; Summaries</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">2</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Portfolios of Investments</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">16</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Financial Statements</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"> &nbsp; &nbsp; &nbsp;<FONT face="serif">Statements of Assets and Liabilities</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">44</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT face="serif">Statements of Operations</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">47</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"> &nbsp; &nbsp; &nbsp;<FONT face="serif">Statements of Changes in Net Assets</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">50</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Financial Highlights</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">56</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Notes to Financial Statements</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">70</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Dividend Reinvestment Plans</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">77</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Additional Information</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT face="serif">78</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<hr size="1" noshade>

<P align="center"><B><FONT size=2 face="serif">Privacy Principles of the Trusts</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Trusts are committed to maintaining the privacy of shareholders and to safeguarding their non-public personal information. The following information is provided to help you understand what
personal information the Trusts collect, how we protect that information and why, in certain cases, we may share information with select other parties.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Generally, the Trusts do not receive any non-public personal information relating to their shareholders, although certain non-public personal information of shareholders may become available to
the Trusts. The Trusts do not disclose any non-public personal information about their shareholders or former shareholders to anyone, except as permitted by law or as is necessary in order to service shareholder accounts (for example, to a transfer
agent or third party administrator).</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Trusts restrict access to non-public personal information about their shareholders to BlackRock employees with a legitimate business need for the information. The Trusts maintain physical,
electronic and procedural safeguards designed to protect the non-public personal information of their shareholders.</FONT></P>
<hr size="1" noshade>
<P>&nbsp;</P>
<HR noshade  width="100%" size=4>

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

<P align="center">
<B><FONT face="serif">LETTER TO SHAREHOLDERS</FONT></B></P>
<P align="right">
<FONT size=2 face="serif">February 28, 2005</FONT></P>
<P>
<FONT size=2 face="serif">Dear Shareholder:</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We are pleased to report that during the semi-annual period, the Trusts provided monthly income, as well as the opportunity to invest in various portfolios of municipal securities. This report
contains the Trusts&#146; unaudited financial statements and a listing of the portfolios&#146; holdings.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The portfolio management team continuously monitors the municipal bond market and adjusts the portfolios in order to gain exposure to various issuers, revenue sources and security types. This
strategy enables the Trusts to move among different sectors, credits and coupons to capitalize on changing market conditions. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The following table shows the Trusts&#146; current yields, tax-equivalent yields, closing market prices per share and net asset values (&#147;NAV&#148;) per share as of February 28,
2005.</FONT></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=56% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=left>

          <center>
    </center></TD>
        <TD width=4% align=left>

          <center>
    </center></TD>
        <TD width=1%>
          <center>
    </center></TD>
        <TD colspan="2" align=center>
      <center>
        <B><FONT size=2 face="serif">Tax-</FONT></B>
      </center></TD>
        <TD width=1%>
          <center>
    </center></TD>
        <TD colspan="2" align=left>
      <center>
        <B><FONT size=2 face="serif">Closing</FONT></B>&nbsp;
      </center></TD>
        <TD width=1%>
          <center>
    </center></TD>
        <TD width=3% align=left>

          <center>
    </center></TD>
        <TD width=5% align=left>

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

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

          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="serif">Trust (Ticker)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
      <center>
        <B><FONT size=2 face="serif">Yield</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan="2" align=center>
      <center>
        <B><FONT size=2 face="serif">Yield</FONT></B><B><SUP><FONT size=2 face="serif">1</FONT></SUP></B>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan="2" align=left>
      <center>
        <B><FONT size=2 face="serif">Price</FONT></B>&nbsp;
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan="2" align=left>
      <center>
        <B><FONT size=2 face="serif">NAV</FONT></B>&nbsp;
      </center></TD>
  </TR>
<TR>
        <TD colspan=13>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (BYM)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.42</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=2 face="serif">9.88</FONT>
        </TD>
        <TD width=5% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=3% align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD width=6% align=center>
      <div align="left"><FONT size=2 face="serif">14.60</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">15.24</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD colspan=13>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock Municipal Bond Trust (BBK)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.92</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10.65</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">14.98</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">15.82</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD colspan=13>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.91</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10.63</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">14.54</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">15.20</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD colspan=13>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock California Insured Municipal Income Trust (BCK)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.37</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9.80</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">14.13</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">14.88</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD colspan=13>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock California Municipal Bond Trust (BZA)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.57</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10.11</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">14.55</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">15.69</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD colspan=13>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock California Municipal Income Trust II (BCL)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.78</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10.43</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">14.38</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">14.79</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD colspan=13>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock Florida Insured Municipal Income Trust (BAF)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.02</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">14.96</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">14.96</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD colspan=13>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock Florida Municipal Bond Trust (BIE)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.25</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9.62</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">14.94</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">16.06</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD colspan=13>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock Maryland Municipal Bond Trust (BZM)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.59</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.60</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">15.31</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">15.85</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD colspan=13>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.17</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9.49</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">15.28</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">15.78</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD colspan=13>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9.66</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">14.32</FONT>&nbsp;
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">14.96</FONT>&nbsp;
      </div></TD>
</TR>
<TR>
        <TD colspan=13>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock New York Municipal Bond Trust (BQH)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.38</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9.82</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD align=center>
<FONT size=2 face="serif">14.50</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">15.80</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock New York Municipal Income Trust II (BFY)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.47</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9.95</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD align=center>
<FONT size=2 face="serif">14.60</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">14.91</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock Virginia Municipal Bond Trust (BHV)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.26</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8.09</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD align=center>
<FONT size=2 face="serif">16.51</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
<FONT size=2 face="serif">16.08</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<hr size="1" noshade>
<BR>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yields are based on closing market price. Tax-equivalent yield assumes the maximum Federal tax rate of 35%.</FONT>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">BlackRock, Inc. (&#147;BlackRock&#148;), a world leader in asset management, has a proven commitment to the municipal bond market. As of February 28, 2005, BlackRock and its affiliates managed
over &#36;22 billion in municipal bonds, including seven open-end and 37 closed-end municipal bond funds. BlackRock is recognized for its emphasis on risk management and proprietary analytics and for its reputation managing money for the
world&#146;s largest institutional investors. BlackRock Advisors, Inc., and its affiliate, BlackRock Financial Management, Inc., which manage the Trusts, are wholly owned subsidiaries of BlackRock.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">On behalf of BlackRock, we thank you for your continued trust and assure you that we remain committed to excellence in managing your assets.</FONT></P>
<P>
<FONT size=2 face="serif">Sincerely,</FONT><BR>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=24% align=left><img src="c36072_ncsrsx2x1.jpg" border=0></TD>
  <TD width=15%>&nbsp;</TD>
  <TD width=61% align=left><img src="c36072_ncsrsx2x2.jpg" width="155" height="75" border=0></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Laurence D. Fink</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Ralph L. Schlosstein</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Chief Executive Officer</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">President</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BlackRock Advisors, Inc.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">BlackRock Advisors, Inc.</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">1</FONT></P>

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

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


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2005</FONT></B><br>
<BR>
<B><FONT size=2 face="serif">BlackRock Insured Municipal Income Trust (BYM)</FONT></B><BR>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=74% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <FONT size=2 face="serif">BYM</FONT>
      </center></TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
      <center>
        <FONT size=2 face="serif">October 31, 2002</FONT>
      </center></TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=13% align=right>
<FONT size=2 face="serif">&#36;14</FONT>
        </TD>
        <TD width=10% align=left><font size=2 face="serif">.60</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;15</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.24</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/05 (&#36;14.60):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.42%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.078125</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.937500</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/05:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<hr size="1" noshade>
<p><SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.<br>
</FONT><SUP><FONT size=1 face="serif">2
      </FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.<br>
      </FONT><SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></p>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="7" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/05</FONT></B>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=9>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.60</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;13.97</FONT>&nbsp;
      </center></TD>
        <TD align=right>      <div align="right"><FONT size=2 face="serif">4.51</FONT>
    </div></TD>
        <TD align=left>      <div align="left"><FONT size=2 face="serif">%</FONT>&nbsp;
    </div></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.90</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;13.25</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=9>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.24</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.62</FONT>&nbsp;
      </center></TD>
        <TD align=right>      <div align="right"><FONT size=2 face="serif">4.24</FONT>
    </div></TD>
        <TD align=left>      <div align="left"><FONT size=2 face="serif">%</FONT>&nbsp;
    </div></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.55</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;14.60</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=9>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the portfolio composition and credit quality allocations of the Trust&#146;s long-term investments:</FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=43% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">35</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">32</FONT>
        </TD>
        <TD width=11% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">25</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Resource Recovery</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=43% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">87</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">82</FONT>
        </TD>
        <TD width=10% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" width="140" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the higher of Standard &amp; Poor&#146;s (&#147;S&amp;P&#146;s&#148;), Moody&#146;s Investors Service (&#147;Moody&#146;s&#148;) or Fitch Ratings
  (&#147;Fitch&#146;s&#148;) rating.</FONT>
<P align="center">
<FONT size=2 face="serif">2</FONT></P>

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

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


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2005</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock Municipal Bond Trust (BBK)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=77% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <FONT size=2 face="serif">BBK</FONT>
      </center></TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">April 30, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=11% align=right>
<FONT size=2 face="serif">&#36;14</FONT>
        </TD>
        <TD width=9% align=left><FONT size=2 face="serif">.98</FONT>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;15</FONT></TD>
        <TD align=left><FONT size=2 face="serif">.82</FONT>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/05 (&#36;14.98):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.92%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">.086375</FONT>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;1</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">.036500</FONT>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/05:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<p>
    <SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. <br>
    </FONT><SUP><FONT size=1 face="serif">2
      </FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT>
      <br>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></p>
<P><FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD colspan="6" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/05</FONT></B>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </center></TD>
        <TD colspan="2" align=right>      <center>
          <B><FONT size=2 face="serif">Change</FONT></B>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.98</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.61</FONT>&nbsp;
      </center></TD>
        <TD align=right>      <div align="right"><FONT size=2 face="serif">2.53</FONT>
    </div></TD>
        <TD align=left>      <div align="left"><FONT size=2 face="serif">%</FONT>&nbsp;
    </div></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.35</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;14.11</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.82</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.00</FONT>&nbsp;
      </center></TD>
        <TD align=right>      <div align="right"><FONT size=2 face="serif">5.47</FONT>
    </div></TD>
        <TD align=left>      <div align="left"><FONT size=2 face="serif">%</FONT>&nbsp;
    </div></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.05</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;14.97</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the portfolio composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=43% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD width=13% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=13% align=right>
<FONT size=2 face="serif">20</FONT>
        </TD>
        <TD width=11% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Other</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=27% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD width=19%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">34</FONT>
        </TD>
        <TD width=13% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">29</FONT>
        </TD>
        <TD width=10% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">22</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">28</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">30</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BB/Ba</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" width="140" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<br>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of the non-rated securities to be of investment grade quality. As of August 31, 2004, the market value of these securities was
&#36;5,679,867 representing 2.5% of the Trust&#146;s long-term investments.</FONT>
<P align="center">
<FONT size=2 face="serif">3</FONT></P>

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

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


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2005</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock Municipal Income Trust II (BLE)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=77% align=left>
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <FONT size=2 face="serif">BLE</FONT>
      </center></TD>
  </TR>
<TR>
        <TD colspan=4>
      <hr noshade size=1>       </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">July 30, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=11% align=right>
<FONT size=2 face="serif">&#36;14</FONT>
        </TD>
        <TD width=9% align=left><font size=2 face="serif">.54</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;15</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.20</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/05 (&#36;14.54):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.91%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.08375</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;1</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.00500</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/05:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">37</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<br>
    <SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.</FONT><br>
    <SUP><FONT size=1 face="serif">2 </FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT> <br>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD colspan="6" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/05</FONT></B>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.54</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;13.92</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">4.45</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.93</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;13.75</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.20</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.34</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">6.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.45</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;14.31</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the portfolio composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=43% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">23</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">23</FONT>
        </TD>
        <TD width=11% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=27% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD width=19%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">25</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">23</FONT>
        </TD>
        <TD width=10% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">19</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">26</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BB/Ba</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" width="140" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<br>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2005 and August 31, 2004, the market value of these
securities was &#36;13,721,257 representing 2.6% and &#36;13,739,067 representing 2.7%, respectively, of the Trust&#146;s long-term investments. </FONT><p></P>
<P align="center">
<FONT size=2 face="serif">4</FONT></P>

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

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


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2005</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock California Insured Municipal Income Trust (BCK)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=73% align=left>
<FONT size=2 face="serif">Symbol on the New York Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <FONT size=2 face="serif">BCK</FONT>
      </center></TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">October 31, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=13% align=right>
<FONT size=2 face="serif">&#36;14</FONT>
        </TD>
        <TD width=11% align=left><font size=2 face="serif">.13</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;14</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.88</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/05 (&#36;14.13):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.37%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.075</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.900</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/05:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">37</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<p>
    <SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT>
    <br>
  <SUP><FONT size=1 face="serif">2
      </FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT>
<br>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="7" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/05</FONT></B>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=9>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.13</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.00</FONT>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.93</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.55</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;13.41</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=9>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.88</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.01</FONT>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.21</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.24</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;13.98</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=9>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the portfolio composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=35% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=17% align=right>
<FONT size=2 face="serif">31</FONT>
        </TD>
        <TD width=14% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">30</FONT>
        </TD>
        <TD width=13% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">25</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=24% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD width=14%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=17% align=right>
<FONT size=2 face="serif">91</FONT>
        </TD>
        <TD width=14% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">81</FONT>
        </TD>
        <TD width=13% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" width="140" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<P align="center">
<FONT size=2 face="serif">5</FONT></P>

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

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


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2005</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock California Municipal Bond Trust (BZA)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=77% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <FONT size=2 face="serif">BZA</FONT>
      </center></TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">April 30, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=11% align=right>
<FONT size=2 face="serif">&#36;14</FONT>
        </TD>
        <TD width=9% align=left><font size=2 face="serif">.55</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;15</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.69</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/05 (&#36;14.55):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.57%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.079656</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.955872</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/05:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<p><SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT>
<br><SUP><FONT size=1 face="serif">2
      </FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT>
<br>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="6" align=right><hr size="1" noshade>     </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/05</FONT></B>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.55</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;13.90</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">4.68</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.95</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;13.75</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.69</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.67</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">6.95</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.91</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;14.65</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the portfolio composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=43% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">26</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">24</FONT>
        </TD>
        <TD width=11% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">20</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Other</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=28% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">30</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">22</FONT>
        </TD>
        <TD width=10% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">33</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">31</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">CCC/Caa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" width="140" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<br>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2005 and August 31, 2004, the market value of these
securities was &#36;4,398,246 representing 5.9% and &#36;8,834,282 representing 11.6%, respectively, of the Trust&#146;s long-term investments. </FONT>
<P align="center">
<FONT size=2 face="serif">6</FONT></P>

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

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


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2005</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock California Municipal Income Trust II (BCL)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=77% align=left>
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <FONT size=2 face="serif">BCL</FONT>
      </center></TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">July 30, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=11% align=right>
<FONT size=2 face="serif">&#36;14</FONT>
        </TD>
        <TD width=9% align=left><font size=2 face="serif">.38</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;14</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.79</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/05 (&#36;14.38):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.78%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.08125</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; 0</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.97500</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/05:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">38</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<br><SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT>
<br><SUP><FONT size=1 face="serif">2
      </FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT>
<br>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT><p></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="6" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/05</FONT></B>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.38</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;13.71</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">4.89</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.84</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;13.52</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.79</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;13.77</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">7.41</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.07</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;13.77</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the portfolio composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=43% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">25</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=13% align=right>
<FONT size=2 face="serif">25</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=27% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD width=19%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">36</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=12% align=right>
<FONT size=2 face="serif">33</FONT>
        </TD>
        <TD width=13% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">25</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">CCC/Caa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">20</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" width="140" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT> <br>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2005 and August 31, 2004, the market value of these
securities was &#36;4,231,394 representing 2.3% and &#36;4,211,315 representing 2.4%, respectively, of the Trust&#146;s long-term investments. </FONT>
<P align="center">
<FONT size=2 face="serif">7</FONT></P>

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

<P align="left" style="page-break-before:always"></P><PAGE>
<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2005</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock Florida Insured Municipal Income Trust (BAF)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=73% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <FONT size=2 face="serif">BAF</FONT>
      </center></TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">October 31, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=13% align=right>
<FONT size=2 face="serif">&#36;14</FONT>
        </TD>
        <TD width=11% align=left><font size=2 face="serif">.96</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;146</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.9</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/05 (&#36;14.96):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.02%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">.075</FONT>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">.900</FONT>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/05:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">37</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<p><SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.<br>
</FONT><FONT size=1 face="serif"><SUP>2
      </SUP>The distribution is not constant and is subject to change.<br>
</FONT><SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></p>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="6" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/05</FONT></B>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.96</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.14</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">5.80</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.40</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;13.91</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.96</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.34</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">4.32</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.25</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;14.32</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the portfolio composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=35% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=17% align=right>
<FONT size=2 face="serif">22</FONT>
        </TD>
        <TD width=14% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">22</FONT>
        </TD>
        <TD width=14% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=27% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD width=11%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=17% align=right>
<FONT size=2 face="serif">83</FONT>
        </TD>
        <TD width=14% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">82</FONT>
        </TD>
        <TD width=13% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" width="140" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.<br>
</FONT><SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2005 and August 31, 2004, the market value of these
securities was &#36;5,202,950 representing 2.6% and &#36;9,959,662 representing 5.0%, respectively, of the Trust&#146;s long-term investments.</FONT>
<P align="center">
<FONT size=2 face="serif">8</FONT></P>

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

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


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2005</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock Florida Municipal Bond Trust (BIE)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=77% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">BIE</FONT>
        </TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">April 30, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=11% align=right>
<FONT size=2 face="serif">&#36;14.94</FONT>
        </TD>
        <TD width=9% align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;16.06</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/05 (&#36;14.94):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.25</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.077808</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.933696</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/05:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<p><SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT></p>
<p><SUP><FONT size=1 face="serif">2
      </FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT>
</p>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="6" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/05</FONT></B>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.94</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.17</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">5.43</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.65</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;14.08</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.06</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.53</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">3.54</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.32</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;15.48</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the portfolio composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=43% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">26</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=12% align=right>
<FONT size=2 face="serif">27</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

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

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Other</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=27% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD width=19%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">38</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=12% align=right>
<FONT size=2 face="serif">38</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">23</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" width="140" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<P>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2005, the market value of these securities was
&#36;1,916,845 representing 2.4% of the Trust&#146;s long-term investments.</FONT></P>
<P align="center">
<FONT size=2 face="serif">9</FONT></P>

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

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


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2005</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock Maryland Municipal Bond Trust (BZM)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=76% align=left>
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <FONT size=2 face="serif">BZM</FONT>
      </center></TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">April 30, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=12% align=right>
<FONT size=2 face="serif">&#36;15</FONT>
        </TD>
        <TD width=9% align=left><FONT size=2 face="serif">.31</FONT>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;15</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">.85</FONT>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/05 (&#36;15.31):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.59%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">.07135</FONT>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><FONT size=2 face="serif">.85620</FONT>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/05:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<p><SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.<br>
</FONT><SUP><FONT size=1 face="serif">2
      </FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.<br>
      </FONT><SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></p>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="6" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/05</FONT></B>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.31</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.99</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">2.13</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.75</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;14.27</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.85</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.24</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">4.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.10</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;15.22</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the portfolio composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=35% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=17% align=right>
<FONT size=2 face="serif">20</FONT>
        </TD>
        <TD width=14% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">20</FONT>
        </TD>
        <TD width=14% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">18</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Other</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=27% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD width=11%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=17% align=right>
<FONT size=2 face="serif">34</FONT>
        </TD>
        <TD width=14% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">35</FONT>
        </TD>
        <TD width=13% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">37</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" width="140" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT><br>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2005 and August 31, 2004, the market value of these
securities was &#36;1,045,170 representing 2.1% and &#36;1,044,840 representing 2.2%, respectively, of the Trust&#146;s long-term investments. </FONT>
<P align="center">
<FONT size=2 face="serif">10</FONT></P>

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

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


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2005</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock New Jersey Municipal Bond Trust (BLJ)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=77% align=left>
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">BLJ</FONT>
        </TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">April 30, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=11% align=right>
<FONT size=2 face="serif">&#36;15</FONT>
        </TD>
        <TD width=9% align=left><font size=2 face="serif">.28</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;15</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.78</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/05 (&#36;15.28):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.17%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.078582</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.942984</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/05:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield
on closing market price is calculated by dividing the current annualized distribution
per share by the closing market price.<br>
</FONT><FONT size=1 face="serif"><SUP>2
  </SUP>The distribution is not constant and is
  subject to change.</FONT><br>
  <SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT>
  <P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="6" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/05</FONT></B>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.28</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;13.91</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">9.85</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.14</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;13.80</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.78</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.71</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">7.27</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.00</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;14.70</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the portfolio composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=43% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">28</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=12% align=right>
<FONT size=2 face="serif">29</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Other</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=27% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD width=19%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">25</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=13% align=right>
<FONT size=2 face="serif">25</FONT>
        </TD>
        <TD width=11% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">47</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">B</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" width="140" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<P align="center">
<FONT size=2 face="serif">11</FONT></P>

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

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


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2005</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock New York Insured Municipal Income Trust (BSE)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=73% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <FONT size=2 face="serif">BSE</FONT>
      </center></TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">October 31, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=13% align=right>
<FONT size=2 face="serif">&#36;14.32</FONT>
        </TD>
        <TD width=11% align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;14.96</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/05 (&#36;14.32):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.28</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.075</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;0.900</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/05:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">37</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. </FONT>
<P><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.</FONT></P>
<P>
<SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT></P>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="6" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/05</FONT></B>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.32</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.08</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">1.70</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.03</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;13.47</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.96</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.18</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">5.50</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.17</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;14.17</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the portfolio composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=29% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=18% align=right>
<FONT size=2 face="serif">33</FONT>
        </TD>
        <TD width=16% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=17% align=right>
<FONT size=2 face="serif">33</FONT>
        </TD>
        <TD width=14% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">29</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=28% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=18% align=right>
<FONT size=2 face="serif">83</FONT>
        </TD>
        <TD width=16% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=17% align=right>
<FONT size=2 face="serif">82</FONT>
        </TD>
        <TD width=14% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" width="140" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<P align="center">
<FONT size=2 face="serif">12</FONT></P>

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

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


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2005</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock New York Municipal Bond Trust (BQH)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=77% align=left>
<FONT size=2 face="serif">Symbol on New York Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <FONT size=2 face="serif">BQH</FONT>
      </center></TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
      <center>
        <FONT size=2 face="serif">April 30, 2002</FONT>
      </center></TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=11% align=right>
<FONT size=2 face="serif">&#36;14</FONT>
        </TD>
        <TD width=9% align=left><font size=2 face="serif">.50</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;15</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.80</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/05 (&#36;14.50):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.38%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.077099</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.925188</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/05:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.</FONT><br>
<SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.<br>
</FONT><SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr valign="bottom">
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="6" align=right><hr size="1" noshade>    </td>
  </tr>
  <tr valign="bottom">
    <td align=left>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=right> <center>
      <b><font size=2 face="serif">2/28/05</font></b>&nbsp;
    </center></td>
    <td align=right> <center>
      <b><font size=2 face="serif">8/31/04</font></b>&nbsp;
    </center></td>
    <td colspan="2" align=right> <center>
    <b><font size=2 face="serif">Change</font></b>    </center></td>
    <td align=right> <center>
      <b><font size=2 face="serif">High</font></b>&nbsp;
    </center></td>
    <td align=center> <center>
      <b><font size=2 face="serif">Low</font></b>&nbsp;
    </center></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">Market Price</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=right> <center>
      <font size=2 face="serif">&#36;14.50</font>&nbsp;
    </center></td>
    <td align=right> <center>
      <font size=2 face="serif">&#36;13.97</font>&nbsp;
    </center></td>
    <td align=right> <font size=2 face="serif">3.79</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=right> <center>
      <font size=2 face="serif">&#36;14.79</font>&nbsp;
    </center></td>
    <td align=center> <center>
      <font size=2 face="serif">&#36;13.71</font>&nbsp;
    </center></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=2 face="serif">NAV</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=right> <center>
      <font size=2 face="serif">&#36;15.80</font>&nbsp;
    </center></td>
    <td align=right> <center>
      <font size=2 face="serif">&#36;15.09</font>&nbsp;
    </center></td>
    <td align=right> <font size=2 face="serif">4.71</font> </td>
    <td align=left> <font size=2 face="serif">%</font>&nbsp; </td>
    <td align=right> <center>
      <font size=2 face="serif">&#36;15.96</font>&nbsp;
    </center></td>
    <td align=center> <center>
      <font size=2 face="serif">&#36;15.07</font>&nbsp;
    </center></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
</table>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the portfolio composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=43% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">13</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=13% align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Power</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Other</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=27% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD width=19%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">23</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=13% align=right>
<FONT size=2 face="serif">22</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">25</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">25</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">23</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">CCC/Caa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" width="140" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<P align="center">
<FONT size=2 face="serif">13</FONT></P>

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

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


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2005</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock New York Municipal Income Trust II (BFY)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=77% align=left>
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <FONT size=2 face="serif">BFY</FONT>
      </center></TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">July 30, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=11% align=right>
<FONT size=2 face="serif">&#36;14</FONT>
        </TD>
        <TD width=9% align=left><font size=2 face="serif">.60</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;14</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.91</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/05 (&#36;14.60):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.47%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.07875</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.94500</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/05:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">38</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.<br>
</FONT><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.<br>
</FONT><SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="6" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/05</FONT></B>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.60</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;13.70</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">6.57</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.85</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;13.56</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.91</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;14.16</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">5.30</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.11</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;14.14</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the portfolio composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=43% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">19</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=12% align=right>
<FONT size=2 face="serif">20</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">19</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tax Revenue</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=27% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD width=19%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=12% align=right>
<FONT size=2 face="serif">16</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">41</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">20</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">18</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">CCC/Caa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" width="140" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT>
<P align="center">
<FONT size=2 face="serif">14</FONT></P>

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

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


<B><FONT face="serif">TRUST SUMMARIES (unaudited)</FONT></B><BR>
<B><FONT face="serif">FEBRUARY 28, 2005</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">BlackRock Virginia Municipal Bond Trust (BHV)</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Trust Information</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=77% align=left>
<FONT size=2 face="serif">Symbol on American Stock Exchange:</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <FONT size=2 face="serif">BHV</FONT>
      </center></TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Initial Offering Date:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<FONT size=2 face="serif">April 30, 2002</FONT>
        </TD>
  </TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Closing Market Price as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=11% align=right>
<FONT size=2 face="serif">&#36;16</FONT>
        </TD>
        <TD width=9% align=left><font size=2 face="serif">.51</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net Asset Value as of 2/28/05:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;16</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.08</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Yield on Closing Market Price as of 2/28/05 (&#36;16.51):</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.26%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Monthly Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.072428</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Current Annualized Distribution per Common Share:</FONT><SUP><FONT size=2 face="serif">2</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &nbsp;0</FONT>
        </TD>
        <TD align=left><font size=2 face="serif">.869136</font>

        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Leverage as of 2/28/05:</FONT><SUP><FONT size=2 face="serif">3</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">36</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. <br>
</FONT><SUP><FONT size=1 face="serif">2
</FONT></SUP><FONT size=1 face="serif">The distribution is not constant and is subject to change.<br>
</FONT><SUP><FONT size=1 face="serif">3 </FONT></SUP><FONT size=1 face="serif">As a percentage of managed assets (as defined in Note 2 of the Notes to Financial Statements).</FONT>
<P>
<FONT size=2 face="serif">The table below summarizes the changes in the Trust&#146;s market price and NAV:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="6" align=right><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">2/28/05</FONT></B>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">8/31/04</FONT></B>&nbsp;
      </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Change</FONT></B>
      </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Low</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Market Price</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.51</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.34</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">7.63</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;17.17</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;15.42</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">NAV</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.08</FONT>&nbsp;
      </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;15.47</FONT>&nbsp;
      </center></TD>
        <TD align=right>
<FONT size=2 face="serif">3.94</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">&#36;16.35</FONT>&nbsp;
      </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">&#36;15.45</FONT>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The following charts show the portfolio composition and credit quality allocations of the Trust&#146;s long-term investments: </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">Sector Breakdown</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=43% align=left>
<B><FONT size=2 face="serif">Sector</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Water &amp; Sewer</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">18</FONT>
        </TD>
        <TD width=13% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=12% align=right>
<FONT size=2 face="serif">18</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Transportation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">City, County &amp; State</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Housing</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">17</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Hospitals</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Education</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Tobacco</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Lease Revenue</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Industrial &amp; Pollution Control</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Other</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Credit Breakdown</FONT></B><B><SUP><FONT size=2 face="serif">4</FONT></SUP></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=27% align=left>
<B><FONT size=2 face="serif">Credit Rating</FONT></B>&nbsp;
        </TD>
        <TD width=19%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28, 2005</FONT></B>
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">August 31, 2004</FONT></B>
        </TD>
  </TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA/Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">46</FONT>
        </TD>
        <TD width=13% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=12% align=right>
<FONT size=2 face="serif">46</FONT>
        </TD>
        <TD width=12% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA/Aa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB/Baa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Not Rated</FONT><SUP><FONT size=2 face="serif">5</FONT></SUP>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" width="140" size="1">
<SUP><FONT size=1 face="serif">4 </FONT></SUP><FONT size=1 face="serif">Using
the higher of S&amp;P&#146;s, Moody&#146;s or Fitch&#146;s rating.</FONT><br>
<SUP><FONT size=1 face="serif">5 </FONT></SUP><FONT size=1 face="serif">The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2005 and August 31, 2004, the market value of these
securities was &#36;2,543,933 representing 6.8% and &#36;2,545,242 representing 7.0%, respectively, of the Trust&#146;s long-term investments.</FONT>
<P align="center">
<FONT size=2 face="serif">15</FONT></P>

<HR noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>
<p><font size="3"><b>PORTFOLIO OF INVESTMENTS (</b><b>unaudited</b><b>)<br>FEBRUARY
28, 2005</b></font>
<p><font size="3"><b>BlackRock Insured Municipal Income Trust
(BYM)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
      <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
      <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>    </td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM INVESTMENTS&#151;151.4%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Alabama&#151;11.1%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$40,000<sup> </sup></font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">Jefferson Cnty. Swr., Ser. D, 5.00%,
8/01/12, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  44,215,600 </font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>California&#151;32.5%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">A2</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">14,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Dept. of Wtr. Res., Pwr.
Sply. Rev., Ser. A, 5.375%, 5/01/22 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,201,900</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,100</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Infrastructure &amp; Econ.
Dev., Bay Area Toll Brdgs., Ser. A, 5.00%, </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7/01/36, AMBAC </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,519,554</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A-1, 6.625%, 6/01/40</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,730,880</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">14,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A-1, 6.75%, 6/01/39</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,179,325</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">22,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 5.00%, 6/01/43, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">22,939,875</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">17,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Met. Wtr. Dist. So. California, Ser.
B-1, 5.00%, 10/01/33, FGIC </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">18,230,100</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Francisco City &amp; Cnty. Pub.
Utils. Comm., Wtr. Rev., Ser. A, 5.00%, </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11/01/31, FSA </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,505,200</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">53,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Joaquin Hills Transp. Corridor
Agcy., Toll Road Rev., Ser. A, Zero Coupon, </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1/15/31, MBIA </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,731,770</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,910</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Univ. of California, Ser. O, 5.00%,
9/01/28, FGIC </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/10 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,343,127</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">129,381,731</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Tobacco Settlement Fin. Corp., 6.75%,
5/15/40 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,831,265</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Georgia&#151;10.7%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Atlanta Arpt. Passenger Fac., Ser.
J, 5.00%, 1/01/34, FSA </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/15 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,594,225</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.00%, 11/01/34, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,080,720</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,235</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.00%, 11/01/37, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,373,296</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,685</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.00%, 11/01/43, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">14,172,049</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,555</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser. A, 5.00%, 11/01/38, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/09 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,819,387</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa2</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">De Kalb Cnty. Dev. Auth., PCR, General
Mtrs. Corp. Proj., 6.00%, 3/15/21 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,742,900</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">42,782,577</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Illinois&#151;14.8%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

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

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.00%, 1/01/34, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,150,750</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.00%, 1/01/34, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,191,170</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,550<sup> </sup></font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">Chicago Spec. Transp., 5.25%, 1/01/27,
AMBAC </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12,407,934</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,150<sup> </sup></font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">Chicago Wtr., 5.00%, 11/01/11, AMBAC
</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,072,961</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">18,835</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.00%, 12/15/28</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">19,465,784</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, Zero Coupon, 6/15/28</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,686,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">58,974,599</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Massachusetts&#151;6.1%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">24,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Massachusetts Tpke. Auth., Met. Hwy.
Sys. Rev., Ser. A, 5.00%, 1/01/39, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/09 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">24,451,440</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Detroit City Sch. Dist., GO, Ser.
A, 5.125%, 5/01/31, FSA </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,226,550</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Reno Transp. Proj., 5.125%, 6/01/32,
AMBAC </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,263,160</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.00%, 7/01/25</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,378,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.125%, 7/01/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,797,570</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.25%, 7/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,271,750</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">28,710,480</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
</table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p align='center'><font size="2">16</font>
<HR noshade size=4><PAGE><p>

<p><font size="3"><b>&nbsp;&nbsp;&nbsp;BlackRock Insured Municipal Income Trust
       (BYM) (continued)</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
      <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
      <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>    </td>
  </tr><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>New York&#151;7.8%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York City Mun. Wtr. Fin. Auth.,
Wtr. &amp; Swr. Sys. Rev., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$12,650</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 5.00%, 6/15/36, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  13,145,248</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,305</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. C, 5.00%, 6/15/35, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,607,354</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York City Trust Cultural Resources,
American Museum of Natural History, </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser. A, 5.00%, 7/01/44, MBIA </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,338,300</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">31,090,902</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Pennsylvania&#151;3.8%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB+</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Lebanon Cnty. Hlth. Facs. Auth.,
Good Samaritan Hosp. Proj., 6.00%, 11/15/35 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,181,050</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,560</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Pennsylvania Tpke. Comm., 5.00%,
7/15/41, AMBAC </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,717,274</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,200</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Philadelphia Gas Wks., Ser. 3, 5.125%,
8/01/31, FSA </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,408,416</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,306,740</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>South Carolina&#151;11.8%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">So. Carolina Pub. Svc. Auth., Ser.
B, 5.50%, 1/01/36, FSA </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,397,450</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,000<sup> 3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.00%, 10/01/11</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,920,160</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12,750</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.00%, 10/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,237,943</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.00%, 10/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,194,150</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12,660</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 5.125%, 10/01/26</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,401,116</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">47,150,819</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Tennessee&#151;3.8%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,705</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 1/01/22</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/13 @ 59.566</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,718,754</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,260</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 1/01/23</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/13 @ 56.016</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,497,224</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 1/01/24</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/13 @ 52.749</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,009,170</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,850</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 1/01/25</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/13 @ 49.712</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,281,872</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 1/01/26</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/13 @ 46.781</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,561,450</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,068,470</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Texas&#151;29.4%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,700</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Comal Cnty. Hlth. Facs., Hlth. Care
Sys., McKenna Mem. Proj., Ser. A, 6.25%, 2/01/32 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">02/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,825,541</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,030</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Coppell Indpt. Sch. Dist., Zero Coupon,
8/15/30 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,702,383</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,350</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Dallas Area Rapid Trans., 5.00%,
12/01/31, AMBAC </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,406,541</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,485</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GO, Zero Coupon, 8/15/25, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,742,728</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,915</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GO, Zero Coupon, 8/15/28, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,343,046</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,510</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Toll Road Rev., 5.00%, 8/15/30,
FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,686,155</font></td>

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

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">26,890</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A-3, Zero Coupon, 11/15/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/24 @ 43.826</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,085,935</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">27,675</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A-3, Zero Coupon, 11/15/39</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/24 @ 41.258</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,958,909</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,785</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. H, Zero Coupon, 11/15/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/31 @ 64.91</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">893,551</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,160</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. H, Zero Coupon, 11/15/39</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/31 @ 60.976</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">893,816</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">25,000<sup> </sup></font></td>
<td><font size="2"><sup>3,4</sup></font></td>
<td align=left><font size="2">Houston Wtr. &amp; Swr. Sys., Ser.
A, 5.00%, 12/01/12, FSA </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">27,684,250</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Northside Indpt. Sch. Dist., Sch.
Bldg. Rmkt, 5.125%, 6/15/29 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,990,010</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Antonio Wtr., FGIC, </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,350</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.125%, 5/15/29</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,879,491</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.125%, 5/15/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,527,500</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">25,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Texas Tpke. Auth., Central Sys. Rev.,
Ser. A, 5.00%, 8/15/42, AMBAC </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">25,592,500</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Tyler Cnty. Hlth. Facs. Dev., Mother
Frances Hosp. Proj., 6.00%, 7/01/31 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,133,290</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">117,345,646</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Virginia&#151;2.0%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

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

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.875%, 6/01/17</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/10 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,327,780</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 5.875%, 6/01/17</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/10 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,437,040</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,764,820</font></td>

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

<p><font size="3"><b>&nbsp;&nbsp;&nbsp;BlackRock Insured Municipal Income Trust
(BYM) (continued)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
      <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
      <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>    </td>
  </tr><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>Washington&#151;6.3%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 3,655</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Chelan Cnty. Pub. Util. Dist. 1,
Chelan Hydro Sys., Ser. C, 5.125%, 7/01/33, AMBAC </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   3,814,577</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Port of Seattle, Ser. A, 5.00%, 4/01/31,
FGIC </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,598,460</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Seattle, GO, Ser. F, 5.125%, 12/15/28,
MBIA </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/08 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,838,295</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,380</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Washington, GO, Ser. A, 5.00%, 7/01/25,
FSA </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,639,092</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">24,890,424</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>West Virginia&#151;0.3%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,295</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">West Virginia Econ. Dev. Auth., Correctional
Juvenile Safety, Ser. A, 5.00%, 6/01/29, MBIA </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,351,410</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Long-Term Investments (cost
$566,779,604)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">603,543,473</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>SHORT-TERM INVESTMENTS&#151;4.6%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Maryland&#151;0.6%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">A1+</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,355<sup> </sup></font></td>
<td><font size="2"><sup>5</sup></font></td>
<td align=left><font size="2">Maryland Hlth. &amp; Higher Edl.
Facs. Auth., Pooled Ln. Prog., Ser. D, 1.86%, 3/03/05, FRWD </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,355,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b><font size="4">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"><b>&nbsp;</b></font></font></td>
<td>&nbsp;</td>
<td colspan="2" align=center><font size="2"><b>Shares</b></font></td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='16' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="4"><b>&nbsp;</b></font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"><b>&nbsp;</b></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>MONEY MARKET FUNDS</b><b>&#151;4.0%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,950</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">AIM Tax Free Investment Co. Cash
Reserve Portfolio</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,950,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Short-Term Investments (cost
$18,305,000)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">18,305,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;156.0%
(cost $585,084,604)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">621,848,473</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Other assets in excess of liabilities&#151;1.4%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,716,181</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(57.4)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(229,021,060)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 398,543,594</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup>
</font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

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

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

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup> </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">For purposes of amortized cost valuation,
the maturity date of this instrument is considered to be the earlier of the next
date on which the security can be redeemed at par, or the next date on which the
rate of interest is adjusted. Rate shown as of February 28, 2005.</font></td>

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

<p><font size="2">The value (market value plus accrued interest) of securities that
are covered by insurance, which ensures the payment of principal and interest, represent
approximately 85.2% of the Trust&#146;s managed assets.</font>
<p>
<p>&nbsp;</p>
<hr size="1" noshade>
<center>
  <font size="2"><b>KEY TO ABBREVIATIONS</b></font>
</center>
<p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td align=left><font size="2"><font size="2">AMBAC</font></font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; American Municipal Bond Assurance Corp.</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">GO</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; General Obligation</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">FGIC</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Financial Guaranty Insurance Co.</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">MBIA</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Municipal Bond Insurance Association</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">FRWD</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Floating Rate Weekly Demand</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">PCR</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Pollution Control Revenue</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">FSA</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Financial Security Assurance</font></td>
    <td>&nbsp;</td>
    <td align=left></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='7' ><HR noshade size=1>
</table>
<p>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p align='center'><font size="2">18</font>
<HR noshade size=4><PAGE><p>
<font size="3"><b>PORTFOLIO OF INVESTMENTS (</b><b>unaudited</b><b>)<br>FEBRUARY
28, 2005</b></font>
<p><font size="3"><b>BlackRock Municipal Bond Trust (BBK)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
      <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
      <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>    </td>
  </tr><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM INVESTMENTS&#151;144.0%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Alabama&#151;10.9%</b></font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 9,250</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Courtland Ind. Dev. Brd., PCR, Champion
Intl. Corp. Proj., Ser. A, 6.50%, 9/01/25</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/05 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   9,587,162</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A2</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Huntsville Hlth. Care Auth., Ser.
A, 5.75%, 6/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,888,875</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">17,476,037</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>California&#151;14.6%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,300</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.50%, 6/01/43</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,752,308</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,200</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.625%, 6/01/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,540,956</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">B-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Los Angeles Regl. Arpt. Impvt., Corp.
Lease Rev., Amer. Airlines, Inc. Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 7.50%, 12/01/24</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/12 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,081,600</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Marcos Spl. Tax, Cmnty. Facs.
Dist. No. 02-01</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">465</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.90%, 9/01/28</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/10 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">471,738</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">865</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.95%, 9/01/35</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/10 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">878,036</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,585</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Val Verde Unified Sch. Dist. Fin.
Auth., Spec. Tax Rev., 6.25%, 10/01/28</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,653,456</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">23,378,094</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>District of Columbia&#151;11.0%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Dist. of Columbia,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">595</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Friendship Pub. Charter Sch., Inc.,
5.25%, 6/01/33, ACA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">604,532</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax Incr., Gallary Place Proj.,
5.40%, 7/01/31, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,368,100</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">33,450</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Georgetown Univ., Ser. A, Zero Coupon,
4/01/38, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/11 @ 20.243</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,892,397</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,580</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Tobacco Settlement Fin. Corp., 6.75%,
5/15/40</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,774,574</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">17,639,603</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Florida&#151;19.1%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB-</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,200</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Martin Cnty. Indl. Dev. Auth., Indiantown
Cogeneration Proj., Ser. A, 7.875%, 12/15/25</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">03/05 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,363,990</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,810</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Miami Beach Hlth. Facs. Auth., Mt.
Sinai Med. Ctr. Proj., 6.75%, 11/15/21</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,013,697</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Orange Cnty. Hlth. Facs. Auth., Hosp.
Adventist Hlth. Sys. Proj., 5.625%, 11/15/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,621,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,255</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Palm Beach Cnty. Hsg. Fin. Auth.,
Multi-Fam. Rev., Indian Trace Apts. Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.625%, 1/01/44, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,467,499</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">605</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Pine Islands Cmnty. Dev. Dist., Spl.
Assmt., 5.75%, 5/01/35</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">606,167</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,470</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Reunion West Cmnty. Dev. Dist., Spl.
Assmt., 6.25%, 5/01/36</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,522,244</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Stevens Plantation Cmnty. Dev. Dist.,
Spl. Assmt. Rev., Ser. A, 7.10%, 5/01/35</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,029,260</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">30,623,857</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Georgia&#151;12.8%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Atlanta Arpt. Passenger Fac., Ser.
J, 5.00%, 1/01/34, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/15 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,113,070</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.00%, 11/01/37</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,213,750</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,770</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.00%, 11/01/43</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12,188,894</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">20,515,714</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Illinois&#151;19.1%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">23,065</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Bolingbrook, GO, Ser. B, Zero Coupon,
1/01/36, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/12 @ 23.018</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,712,312</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,150</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Centerpoint Intermodal Ctr. Prog.
Trust, Ser. A, 8.00%, 6/15/23</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,164,628</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,880 </font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">Chicago, GO, Ser. A, 5.50%, 1/01/38,
MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,383,975</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Illinois Edl. Facs. Auth., Student
Hsg. Rev., Edl. Advancement Fund Univ. Ctr. Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.25%, 5/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/07 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,119,340</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Illinois Fin. Auth. Student Hsg.,
MJH Ed. Asst. IV Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,525</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.125%, 6/01/35</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">514,285</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,425</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 5.375%, 6/01/35</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">412,904</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Illinois Hlth. Facs. Auth., Lake
Forest Hosp. Proj., Ser. A, 5.75%, 7/01/29</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,228,060</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 6/15/35</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,137,800</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 12/15/36</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,974,400</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 12/15/37</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,870,200</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">30,517,904</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font></font><tr><td>&nbsp;</td></tr></table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p align='center'><font size="2">19</font>
<HR noshade size=4><PAGE><p>

<p><font size="3"><b>BlackRock Municipal Bond Trust (BBK) (continued)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
      <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
      <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>    </td>
  </tr><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>Indiana&#151;1.3%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Aaa</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 2,010</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Multi-Fam. Hsg., Canterbury House
Apts. Proj., Ser. 1, 5.90%, 12/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   2,127,625</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Kansas&#151;3.3%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">A-</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Wichita Arpt. Auth., Arpt. Facs.
Rev., Cessna Citation Svc. Ctr. Proj., Ser. A, 6.25%, 6/15/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,355,150</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Louisiana&#151;0.7%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Baa1</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,165</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Louisiana Local Gov&#146;t. Env.
Facs. &amp; Cmnty. Dev. Auth., Oakleigh Apts. Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 6.375%, 6/01/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,172,689</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Maryland&#151;3.4%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">NR</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,250</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Baltimore, Spec. Oblig. Rev., Harborview
Lot No. 2 Proj., 6.50%, 7/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/13 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,315,550</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Frederick Cnty. Spl. Oblig., Urbana
Cmnty. Dev. Auth., Ser. B, 6.25%, 7/01/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/07 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,023,820</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa1</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,040</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Maryland Hlth. &amp; Higher Edl.
Facs. Auth., Medstar Hlth. Proj., 5.50%, 8/15/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,085,126</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,424,496</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Multi-State&#151;7.4%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Baa1</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,500 </font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">Charter Mac Equity Issuer Trust,
Ser. B-2, 7.20%, 10/31/52</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,924,115</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Nevada&#151;1.2%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">NR</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">575</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Director of the St. of Nevada Dept.
of Business &amp; Ind., Las Ventanas Retirement Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 7.00%, 11/15/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">573,879</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,400</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Las Vegas Spec. Impvt. Dist. No.
809, Summerlin Area Proj., 5.65%, 6/01/23</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/05 @ 103</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,414,364</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,988,243</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>New Jersey&#151;9.0%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New Jersey Econ. Dev. Auth., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cigarette Tax Rev., 5.50%, 6/15/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,540,815</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">B</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continental Airlines, Inc. Proj.,
7.20%, 11/15/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/10 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,634,960</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kapkowski Road Landfill Proj.,
6.50%, 4/01/28</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,671,125</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Winchester Proj., Ser. A, 5.80%,
11/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,559,175</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">14,406,075</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,330</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Env. Facs. Corp., Clean Wtr. &amp;
Drinking Wtr. Rev., NYC Mun. Wtr. Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 5.00%, 6/15/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,380,859</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,760</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Met. Transp. Auth., Svc. Contract,
Ser. A, 5.00%, 7/01/30, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,824,311</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">765</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Dorm. Auth., Montefiore
Hosp. Proj., 5.00%, 8/01/33, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">02/15 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">795,286</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000,456</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">NR</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Port of Greater Cincinnati Dev. Auth.,
Coop. Pub. Pkg. Infrastructure Proj., 6.40%, 2/15/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">02/14 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,538,985</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Oklahoma&#151;1.1%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">B-</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,725</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Tulsa Mun. Arpt. Trust, Ser. A, 7.75%,
6/01/35</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,742,699</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Oregon&#151;0.7%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Aaa</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Multi-Fam. Hsg., Pacific Tower Apts.
Proj., Ser. 6, 6.05%, 11/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,059,330</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Pennsylvania&#151;3.3%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BB-</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,895</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Pennsylvania Econ. Dev. Fin. Auth.,
Exempt Facs. Rev., Reliant Energy Conv. Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 6.75%, 12/01/36</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/09 @ 103</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,229,035</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>South Carolina&#151;0.7%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">So. Carolina Jobs Econ. Dev. Auth.,
Hosp. Facs. Rev., Palmetto Hlth. Alliance Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. C, 7.00%, 8/01/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,124,210</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Texas&#151;15.0%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">880</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Brazos River Auth., PCR, TXU Elec.
Co. Proj., Ser. C, 6.75%, 10/01/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">957,695</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">940</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Dallas Area Rapid Trans., 5.00%,
12/01/31, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">962,617</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,690</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Harris Cnty. Houston Sports Auth.,
Ser. G, Zero Coupon, 11/15/41, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/31 @ 53.779</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,495,969</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Aaa</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,840</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Multi-Fam. Hsg., Copperwood Ranch
Apts. Proj., Ser. 9, 5.95%, 11/01/35</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,007,333</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">60,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Texas Tpke. Auth., Central Sys. Rev.,
Zero Coupon, 8/15/35, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 25.665</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,431,600</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,840</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Tyler Cnty. Hlth. Facs. Dev., Mother
Frances Hosp. Proj., 6.00%, 7/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,143,901</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">23,999,115</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>West Virginia&#151;0.3%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">520</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">West Virginia Econ. Dev. Auth., Correctional
Juvenile Safety, Ser. A, 5.00%, 6/01/29, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">542,651</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font></font><tr><td>&nbsp;</td></tr></table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p align='center'><font size="2">20</font>
<HR noshade size=4><PAGE><p>

<p><font size="3"><b>BlackRock Municipal Bond Trust (BBK) (continued)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
      <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
      <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>    </td>
  </tr><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>Wisconsin&#151;5.6%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Wisconsin Hlth. &amp; Edl. Facs.
Auth., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 1,350</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aurora Hlth. Care Proj., 6.40%,
4/15/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   1,485,135</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wheaton Franciscan Svcs. Proj.,
5.75%, 8/15/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">02/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,416,010</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,901,145</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Long-Term Investments (cost
$215,993,699)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">230,687,228</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>SHORT-TERM INVESTMENTS&#151;13.2%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>California&#151;2.9%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">A-1+</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,610 </font></td>
<td><font size="2"><sup>5</sup></font></td>
<td align=left><font size="2">Orange Cnty. Sanit. Dist., COP, Ser.
A, 1.77%, 3/01/05, FRDD</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,610,000</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">A-1+</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000 </font></td>
<td><font size="2"><sup>5</sup></font></td>
<td align=left><font size="2">Massachusetts St. Dev. Fin. Agcy.,
Boston Univ., Ser. R-4, 1.79%, 3/01/05, XLCA, FRDD</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>New York&#151;0.7%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">A-1+</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,200 <sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York City Transl. Fin. Auth.,
Ser. A-1, 1.86%, 3/02/05, FRWD</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,200,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b><font size="4">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"><b>&nbsp;</b></font></font></td>
<td>&nbsp;</td>
<td colspan="2" align=center><font size="2"><b>Shares</b></font></td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='16' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="4"><b>&nbsp;</b></font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"><b>&nbsp;</b></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>MONEY MARKET FUNDS</b><b>&#151;7.1%</b></font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,350</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">SSgA Tax Free Money Mkt. Fund</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,350,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,350,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Short-Term Investments (cost
$21,160,000)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">21,160,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;157.2%
(cost $237,153,699)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 251,847,228</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Liabilities in excess of other assets&#151;(0.7)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(1,128,790)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(56.5)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(90,523,359)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 160,195,079</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

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

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
28, 2005, the Trust held 7.4% of its net assets, with a current market value of
$11,924,115, in securities restricted as to resale.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">For purposes of amortized cost valuation,
the maturity date of this instrument is considered to be the earlier of the next
date on which the security can be redeemed at par, or the next date on which the
rate of interest is adjusted. Rate shown as of February 28, 2005.</font></td><td>&nbsp;</td></tr></table>

<p>&nbsp;</p>
<hr size="1" noshade>
<center>
  <font size="2"><b>KEY TO ABBREVIATIONS</b></font>
</center>
<p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td align=left><font size="2"><font size="2">ACA</font></font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; American Capital Access</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">FSA</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Financial Security Assurance</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">AMBAC</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; American Municipal Bond Assurance Corp.</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">GO</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; General Obligation</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">COP</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Certificate of Participation</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">PCR</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Pollution Control Revenue</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">FGIC</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Financial Guaranty Insurance Co.</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">MBIA</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Municipal Bond Insurance Association</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">FRDD</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Floating Rate Daily Demand</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">XLCA</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; XL Capital Assurance</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">FRWD</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Floating Rate Weekly Demand</font></td>
    <td>&nbsp;</td>
    <td align=left></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='7' ><HR noshade size=1>
</table>
<p>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p>
<p align='center'><font size="2">21</font>
<HR noshade size=4><PAGE><p>
<font size="3"><b>PORTFOLIO OF INVESTMENTS (</b><b>unaudited</b><b>)<br>FEBRUARY
28, 2005</b></font>
<p><font size="3"><b>BlackRock Municipal Income Trust II (BLE)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
      <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
      <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>    </td>
  </tr><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM INVESTMENTS&#151;151.4%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>California&#151;15.3%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">A</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 2,250</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Agua Caliente Band, Cahuilla Indians
Proj., 6.00%, 7/01/18</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   2,310,547</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Mobilehome Park Fin. Auth.,
Palomar Estates East &amp; West Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.25%, 3/15/34, ACA </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">03/13 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,601,710</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Statewide Cmnty. Dev.
Auth., Mem. Hlth. Svcs., Ser. A, 5.50%, 10/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,242,100</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">16,850</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.50%, 6/01/43</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">17,894,026</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,800</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.625%, 6/01/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,514,384</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">B-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,660</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Los Angeles Regl. Arpt. Impvt., Corp.
Lease Rev., Amer. Airlines, Inc. Proj., Ser. C, 7.50%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/12 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,776,750</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,620</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Francisco City &amp; Cnty. Redev.
Agcy., Cmnty. Facs. Dist., Mission Bay South Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.625%, 8/01/27 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,860,841</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Marcos Spl. Tax, Cmnty. Facs.
Dist. No. 02-01</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">990</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.90%, 9/01/28</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/10 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,004,345</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,855</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.95%, 9/01/35</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/10 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,882,955</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">53,087,658</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Colorado&#151;4.4%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000<sup> </sup></font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">Colorado Hlth. Facs. Auth., Catholic
Hlth. Initiatives Proj., Ser. A, 5.50%, 3/01/32 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">ETM</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,971,500</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Northwest Pkwy. Pub. Hwy. Auth.,
Ser. A, 5.25%, 6/15/41, FSA </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/11 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,196,800</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,168,300</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>District of Columbia&#151;6.1%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">A</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,265</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Dist. of Columbia, Friendship Pub.
Charter Sch., Inc. Proj., 5.25%, 6/01/33, ACA </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,285,265</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.50%, 5/15/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,767,300</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.75%, 5/15/40</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,901,005</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">20,953,570</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Florida&#151;16.6%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Fishhawk Cmnty. Dev. Dist. II, Spec.
Assmnt. Rev,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 6.25%, 5/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/13 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,132,570</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,815</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 5.00%, 11/01/07</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,852,959</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,780</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Lakes by the Bay So. Cmnty. Dev.
Dist., Florida Spl. Assmt., Ser. A, 6.25%, 5/01/34 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/14 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,968,284</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,650</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Leesburg Hosp., Leesburg Regl. Med.
Ctr. Proj., 5.50%, 7/01/32 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,731,912</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,200</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Live Oak Comm. Dev., Dist. No. 1
Spec. Assmnt. Rev., Ser. A, 6.30%, 5/01/34 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/13 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,341,184</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,230</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Miami Beach Hlth. Facs. Auth., Mt.
Sinai Med. Ctr. Proj., 6.75%, 11/15/21 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,681,613</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,850</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Orange Cnty. Hlth. Facs. Auth., Adventist
Hlth. Sys. Proj., 5.625%, 11/15/32 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,275,385</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">14,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Pinellas Cnty. Hlth. Fac. Auth.,
Baycare Hlth. Sys. Proj., 5.50%, 11/15/33 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">14,676,200</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,085</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Stevens Plantation Cmnty. Dev. Dist.,
Spl. Assmt. Rev., Ser. A, 7.10%, 5/01/35 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,146,007</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,625</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Sumter Cnty. Ind. Dev. Auth., No.
Sumter Util. Co. LLC Proj., 6.90%, 10/01/34 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/09 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,714,633</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,715</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Sumter Landing Cmnty. Dev., Spec.
Assmnt. Rev, 6.875%, 5/01/23 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/13 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,910,446</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">57,431,193</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Georgia&#151;6.3%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Atlanta Arpt. Passenger Fac., Ser.
J, 5.00%, 1/01/34, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/15 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,150,760</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,995</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Atlanta Wtr. &amp; Wstwtr., 5.00%,
11/01/43, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12,421,902</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Milledgeville-Baldwin Cnty. Dev.
Auth., Georgia Coll. &amp; St. Univ. Fndtn. Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.625%, 9/01/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/14 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,188,350</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">21,761,012</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Illinois&#151;15.9%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Bolingbrook, GO, Ser. A, 5.375%,
1/01/38, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,254,280</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,470</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Centerpoint Intermodal Ctr. Prog.
Trust, Ser. A, 8.00%, 6/15/23</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,501,418</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,500<sup> </sup></font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">Illinois Dev. Fin. Auth., Hosp. Rev.,
Adventist Hlth. Sys. Sunbelt Oblig. Proj., 5.65%, 11/15/24</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/09 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,863,525</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,880</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Illinois Fin. Auth., Northwestern
Mem. Hosp. Proj., Ser. A, 5.50%, 8/15/43</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,003,986</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Illinois Fin. Auth. Student Hsg.,
MJH Ed. Asst. IV Proj.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa2</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,125</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.125%, 6/01/35</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,102,039</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,900</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 5.375%, 6/01/35</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">874,386</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Illinois Hlth. Facs. Auth., Elmhurst
Mem. Hlth. Care Proj., 5.50%, 1/01/22</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,414,560</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Illinois Sports Facs. Auth., Ded.
St. Tax Supported Rev., Zero Coupon, 6/15/30, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/15 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12,022,500</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"></font><tr><td>&nbsp;</td></tr></table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p>
<p align='center'><font size="2">22</font>
<HR noshade size=4><PAGE><p>

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


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

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$45,190</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 6/15/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   10,726,750</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 6/15/40</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">817,200</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,290</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">O&#146;Hare Intl. Arpt., Ser. C-2,
5.25%, 1/01/30, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,430,412</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">55,011,056</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Indiana&#151;9.2%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Baa2</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Fort Wayne, PCR, Gen. Mtrs. Corp.
Proj., 6.20%, 10/15/25</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,897,925</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Indiana Hlth. Fac. Fin. Auth., Ascension
Hlth. Proj., Ser. F, 5.375%, 11/15/25</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,173,350</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">19,735</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Indianapolis Local Pub. Impvt. Bond
Bank, Wtr. Wks. Proj., Ser. A, 5.25%, 7/01/33, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">20,736,946</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">31,808,221</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Louisiana&#151;0.7%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Baa1</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,485</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Louisiana Local Gov&#146;t. Env.
Facs. &amp; Cmnty. Dev. Auth., Oakleigh Apts. Proj., Ser. A,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.375%, 6/01/38 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,501,401</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Maryland&#151;3.4%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">NR</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Frederick Cnty. Spl. Oblig., Urbana
Cmnty. Dev. Auth. Proj., Ser. A, 5.95%, 7/01/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/07 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,024,060</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Maryland Econ. Dev. Corp., Student
Hsg. Rev., Univ. of Maryland Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.75%, 10/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,209,200</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Maryland Hlth. &amp; Higher Edl.
Facs. Auth.,</font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa1</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,240</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Medstar Hlth. Proj., 5.50%, 8/15/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,337,194</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Union Hosp. of Cecil Cnty. Proj.,
5.625%, 7/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,047,870</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,618,324</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Mississippi&#151;1.7%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,950</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Lowndes Cnty. Sld. Wst. Disp., PCR,
Weyerhaeuser Co. Proj., Ser. A, 6.80%, 4/01/22</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,958,612</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Missouri&#151;1.8%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">NR</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Dept. of Transp., Rt. 370/Missouri
Bottom Rd./Taussig Rd. Proj., 7.20%, 5/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,274,080</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Multi-State&#151;3.8%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Charter Mac Equity Issuer Trust,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000<sup> </sup></font></td>
<td><font size="2"><sup>5</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.75%, 4/30/15</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,042,100</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,500<sup> </sup></font></td>
<td><font size="2"><sup>5</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 6.00%, 4/30/19</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,663,240</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa1</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000<sup> </sup></font></td>
<td><font size="2"><sup>5</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 6.00%, 4/30/15</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,207,950</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa1</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000<sup> </sup></font></td>
<td><font size="2"><sup>5</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 6.30%, 4/30/19</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,152,130</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,065,420</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">NR</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,225</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Director of the State of Nevada Dept.
of Business &amp; Ind., Las Ventanas Retirement Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser. A, 7.00%, 11/15/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,222,611</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,975</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Henderson Local Impvt. Dist. No.
T-14, 5.80%, 3/01/23</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">03/05 @ 103</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,068,088</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">No. Las Vegas Local Impvt., Spec.
Impvt. Dist. 60 Aliante,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.125%, 12/01/17</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/05 @ 103</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,577,025</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.40%, 12/01/22</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/05 @ 103</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,092,160</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,959,884</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>New Jersey&#151;12.2%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New Jersey Econ. Dev. Auth.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cigarette Tax Rev., 5.50%, 6/15/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,244,890</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cigarette Tax Rev., 5.75%, 6/15/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,173,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">B</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,100</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continental Airlines, Inc. Proj.,
7.20%, 11/15/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/10 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,871,032</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,475</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kapkowski Road Landfill Proj.,
6.50%, 4/01/28</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,642,221</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kapkowski Road Landfill Proj.,
6.50%, 4/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,436,700</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">42,367,843</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>New Mexico&#151;1.4%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Baa1</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,200</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New Mexico Hsg. Auth., Region III,
Villa Delaware Oso Apts. Proj., Ser. A, 6.00%, 1/01/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/13 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,756,908</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>New York&#151;4.5%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,845</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Env. Facs. Corp., Clean Wtr. &amp;
Drinking Wtr. Rev., NYC Mun. Wtr. Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 5.00%, 6/15/31 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,953,793</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,775</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Met. Transp. Auth., Svc. Contract,
Ser. A, 5.00%, 7/01/30, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,912,938</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Caa2</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,800</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Port Auth. of NY &amp; NJ, Spec.
Oblig. Rev., Contl/Eastn. LaGuardia Proj., 9.00%, 12/01/10</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">03/05 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,813,464</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,680,195</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font></font><tr><td>&nbsp;</td></tr></table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p align='center'><font size="2">23</font>
<HR noshade size=4><PAGE><p>

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


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
      <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
      <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>    </td>
  </tr><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>Oklahoma&#151;1.1%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">B-</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 3,925</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Tulsa Mun. Arpt. Trust, Ser. A, 7.75%,
6/01/35</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   3,965,271</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Pennsylvania&#151;6.3%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB+</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Monroe Cnty. Hosp. Auth., Pocono
Med. Ctr. Proj., 6.00%, 1/01/43</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,236,600</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Pennsylvania Econ. Dev. Fin. Auth.,
Ser. A,</font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,175</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amtrak Proj., 6.375%, 11/01/41</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,374,444</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BB-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,565</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exempt Facs. Rev., Reliant Energy
Conv. Proj., 6.75%, 12/01/36</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/09 @ 103</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,285,956</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">21,897,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>South Carolina&#151;6.7%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Greenwood Cnty. Hosp., Self Mem.
Hosp. Facs. Proj.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,280</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.50%, 10/01/26</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,409,921</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,250</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.50%, 10/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,373,175</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,995</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Lancaster Cnty. Assmnt., Edgewater
Impvt. Dist., Ser. A, 6.875%, 11/01/35</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/13 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,169,502</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">So. Carolina Jobs Econ. Dev. Auth.,
Hosp. Facs. Rev., </font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,750</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Georgetown Mem. Hosp. Proj., 5.375%,
2/01/30, RAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,937,200</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,640</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Palmetto Hlth. Alliance Proj.,
Ser. A, 6.25%, 8/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,810,121</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Palmetto Hlth. Alliance Proj.,
Ser. C, 6.875%, 8/01/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,557,250</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">23,257,169</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">20,405</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Knox Cnty. Hlth. Edl. &amp; Hsg.
Facs. Brd., Hosp. Facs. Rev., Ser. A, Zero Coupon, 1/01/21, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/13 @ 63.44</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,794,555</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Texas&#151;16.0%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,650</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Brazos River Auth., PCR, TXU Elec.
Co. Proj., Ser. C, 6.75%, 10/01/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,795,679</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,015</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Dallas Area Rapid Trans., 5.00%,
12/01/31, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,063,481</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">20,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Gulf Coast Wst. Disp. Auth., Env.
Impvt. Rev., Ser. A, 6.10%, 8/01/24</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">21,207,800</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">25,375</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Harris Cnty. Houston Sports Auth.,
Ser. A-3, Zero Coupon, 11/15/36, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/24 @ 49.423</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,348,006</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Texas Tpke. Auth., Central Sys. Rev.,
AMBAC,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">73,370</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 8/15/36</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 24.171</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12,012,870</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">65,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 8/15/37</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">8/12 @ 22.708</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000,250</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">27,600</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 8/15/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 21.384</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,998,688</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">55,426,774</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Virginia&#151;6.8%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">NR<sup>6</sup></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,340<sup> </sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Alexandria Redev. &amp; Hsg. Auth.,
3001 Park Ctr. Apts. Proj., Ser. A, 6.375%, 4/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/08 @ 103</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,721,257</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Halifax Cnty. Indl. Dev. Auth., Exempt
Fac. Rev., Old Dominion Elec. Coop. Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.625%, 6/01/28, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,739,710</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">23,460,967</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>West Virginia&#151;1.8%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Mason Cnty., PCR, Rfdg. Appalachian
Pwr. Co. Proj., Ser. L, 5.50%, 10/01/22</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,135,650</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,115</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">West Virginia Econ. Dev. Auth., Correctional
Juvenile Safety, Ser. A, 5.00%, 6/01/29, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,163,569</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,299,219</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Wisconsin&#151;4.0%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Wisconsin Hlth. &amp; Edl. Facs.
Auth.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,930</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aurora Hlth. Care Proj., 6.40%,
4/15/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,323,393</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Synergy Hlth., Inc. Proj., 6.00%,
11/15/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,267,440</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wheaton Franciscan Svcs. Proj.,
5.75%, 8/15/25</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">02/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,317,500</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,908,333</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Long-Term Investments (cost
$493,871,159)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">524,412,965</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>SHORT-TERM INVESTMENTS&#151;6.6%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>California&#151;0.0%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">A-1</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">75<sup> </sup></font></td>
<td><font size="2"><sup>7</sup></font></td>
<td align=left><font size="2">California Hlth. Facs. Fin. Auth.,
Scripps Hlth. Proj., Ser. B, 1.77%, 3/02/05, MBIA, FRWD</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">75,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Pennsylvania&#151;0.5%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">A-1</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,815<sup> </sup></font></td>
<td><font size="2"><sup>7</sup></font></td>
<td align=left><font size="2">Emmaus Gen. Auth., 1.86%, 3/02/05,
FSA, FRWD</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,815,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font></font><tr><td>&nbsp;</td></tr></table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p>
<p align='center'><font size="2">24</font>
<HR noshade size=4><PAGE><p>

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


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2">&nbsp;</font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Shares</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
      <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><center>
      <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>    </td>
  </tr><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>MONEY MARKET FUNDS</b><b>&#151;6.1%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">17,350</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">AIM Tax Free Investment Co. Cash
Reserve Portfolio</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  17,350,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,700</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">SSgA Tax Free Money Mkt. Fund</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,700,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">21,050,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Short-Term Investments (cost
$22,940,000)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">22,940,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;158.0%
(cost $516,811,159)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 547,352,965</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Other assets in excess of liabilities&#151;1.3%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,572,194</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(59.3)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(205,607,050)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 346,318,109</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup>
</font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup> </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">This security is collateralized by
U.S. Treasury obligations.</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><sup></sup> Security is not registered
under the Securities Act of 1933. These securities may be resold in transactions
in accordance with Rule 144A under that Act, to qualified institutional buyers.
As of February 28, 2005, the Trust held 3.8% of its net assets, with a current market
value of $13,065,420, in securities restricted as to resale.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>6</sup> </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is deemed to be of investment
grade quality by the investment advisor.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>7</sup> </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">For purposes of amortized cost valuation,
the maturity date of this instrument is considered to be the earlier of the next
date on which the security can be redeemed at par, or the next date on which the
rate of interest is adjusted. Rate shown as of February 28, 2005.</font></td><td>&nbsp;</td></tr></table>

<p>
<p align="center">
<hr size="1" noshade>
<center>
  <font size="2"><b>KEY TO ABBREVIATIONS</b></font>
</center>
<p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td align=left><font size="2"><font size="2">ACA</font></font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; American Capital Access</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">FSA</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Financial Security Assurance</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">AMBAC</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; American Municipal Bond Assurance Corp.</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">GO</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; General Obligation</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">ETM</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Escrowed to Maturity</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">MBIA</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Municipal Bond Insurance Association</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">FGIC</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Financial Guaranty Insurance Co.</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">PCR</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Pollution Control Revenue</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">FRWD</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Floating Rate Weekly Demand</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">RAA</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Radian Asset Assurance</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='8' ><HR noshade size=1>
</table>
<p>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p><p align='center'><font size="2">25</font>
<HR noshade size=4><PAGE><p>
<font size="3"><b>PORTFOLIO OF INVESTMENTS (</b><b>unaudited)</b><b><br>FEBRUARY
28, 2005</b></font>
<p><font size="3"><b>BlackRock California Insured Municipal Income
       Trust (BCK)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
      <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
      <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>    </td>
  </tr><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM INVESTMENTS&#151;143.0%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>California&#151;143.0%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 6,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Benicia Unified Sch. Dist., Ser.
B, Zero Coupon, 8/01/23, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   2,661,100</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Dept. of Wtr. Res., Pwr.
Sply. Rev., Ser. A, 5.25%, 5/01/20</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,016,425</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,385</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Edl. Facs. Auth., Scripps
Coll. Proj., 5.00%, 8/01/31, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,456,025</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,500<sup> </sup></font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">California Infrastructure &amp; Econ.
Dev., Rand Corp. Proj., Ser. A, 5.25%, 4/01/42, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,713,570</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Pub. Wks. Brd., Dept.
of Gen. Svcs., Ser. A, 5.00%, 12/01/27, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,194,750</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California St., 5.00%, 6/01/31, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,159,320</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Ceres Unified Sch. Dist., Ser. B,
FGIC,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,055</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 8/01/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 34.887</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">750,644</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,180</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 8/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 32.868</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">735,693</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,300</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 8/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 30.966</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">720,621</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,440</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 8/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 29.174</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">708,502</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,575</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 8/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 27.782</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">695,016</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,275</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 8/01/35</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 26.186</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">600,930</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,600</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Kaweah Delta Hlth. Care Dist., 6.00%,
8/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,807,064</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Long Beach Unified Sch. Dist., Ser.
D, 5.00%, 8/01/31, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/10 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,065,200</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Los Angeles Dept. of Wtr. &amp; Pwr.,
Wtr. Wks. Rev., Ser. A, FGIC,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.00%, 7/01/43</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,148,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.125%, 7/01/41</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,181,250</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Los Angeles Unified Sch. Dist., Ser.
E, 5.125%, 1/01/27, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,292,050</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Los Angeles Wstwtr. Sys., Ser. A,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.00%, 6/01/27, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,233,400</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,025</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.00%, 6/01/32, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,239,189</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">No. California Pwr. Agcy., Pub. Pwr.
Rev., Hydroelec. Proj. 1, Ser. A, 5.00%, 7/01/28, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/08 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,189,200</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">No. Orange Cnty. Cmnty. Coll. Dist.,
Ser. A, 5.00%, 2/01/27, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,618,725</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Riverside Unified Sch. Dist., Ser.
A, 5.00%, 2/01/27, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">02/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,225,600</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,295</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Diego Cnty. Wtr. Auth., COP,
Ser. A, 5.00%, 5/01/32, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,484,826</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,805</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Diego Redev. Agcy., Centre City
Proj., Ser. A, 5.00%, 9/01/28, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,991,482</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Diego Univ. Fndtn Aux. Org.,
Ser. A, 5.00%, 3/01/37, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">03/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,123,720</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">20,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Joaquin Hills Transp. Corridor
Agcy., Toll Road Rev., Ser. A, Zero Coupon, 1/15/31, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,181,800</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Jose Fin. Auth., Civic Ctr. Proj.,
Ser. B, 5.00%, 6/01/37, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,153,480</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,125</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Santa Rosa Wstwtr., Ser. B, Zero
Coupon, 9/01/27, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,567,899</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Tustin Unified Sch. Dist., Spec.
Tax Rev., Cmnty. Facs. Dist. 97&#151;1, Ser. A, 5.00%, 9/01/38, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,079,170</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Westlands Wtr. Dist., COP, 5.00%,
9/01/34, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,131,320</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Long-Term Investments (cost
$107,680,297)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">112,125,971</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>SHORT-TERM INVESTMENTS&#151;14.4%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>California&#151;4.5%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">A-1+</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,500<sup> </sup></font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">California Econ. Recovery, Ser. C&#151;5,
1.80%, 3/01/05, FRDD</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,500,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>MONEY MARKET FUNDS&#151;9.9%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,900</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">AIM Tax Free Investment Co. Cash
Reserve Portfolio</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,900,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,900</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">SSgA Tax Free Money Mkt. Fund</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,900,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,800,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Short-Term Investments (cost
$11,300,000)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,300,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;157.4%
(cost $118,980,297)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 123,425,971</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Other assets in excess of liabilities&#151;1.9%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,476,136</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(59.3)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><sup>&nbsp;</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(46,502,166)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  78,399,941</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

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

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">For purposes of amortized cost valuation,
the maturity date of this instrument is considered to be the earlier of the next
date on which the security can be redeemed at par, or the next date on which the
rate of interest is adjusted. Rate shown as of February 28, 2005.</font></td><td>&nbsp;</td></tr></table>

<p><font size="2">The value (market value plus accrued interest) of securities that
are covered by insurance, which ensures the payment of principal and interest, represent
approximately 89.1% of the Trust&#146;s managed assets.</font>
<p><p><p>
<hr size="1" noshade>
<center>
  <font size="2"><b>KEY
  TO ABBREVIATIONS</b></font>
</center>
<p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <td align=left><font size="2"><font size="2">AMBAC</font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; American Municipal Bond Assurance
Corp.</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">FRDD</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Floating Rate Daily Demand</font></td>

</tr>
<tr valign=top><td align=left><font size="2">COP</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Certificate of Participation</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">FSA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Financial Security Assurance</font></td>
</tr>
<tr valign=top><td align=left><font size="2">FGIC</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Financial Guaranty Insurance
Co.</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">MBIA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Municipal Bond Insurance Association</font>
<tr valign=top>
  <td colspan="7" align=left><hr size="1" noshade>    </td>
  </table>
<p align="center"><font size="2">See Notes to Financial Statements.</font></p>
<p><p align='center'><font size="2">26</font>
<HR noshade size=4><PAGE><p>
<font size="3"><b>PORTFOLIO OF INVESTMENTS (</b><b>unaudited)</b><b><br>FEBRUARY
28, 2005</b></font>
<p><font size="3"><b>BlackRock California Municipal Bond Trust
(BZA)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
      <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
      <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>    </td>
  </tr><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM INVESTMENTS&#151;142.2%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>California&#151;134.6%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Anaheim Pub. Fin. Auth., Pub. Impvt.
Proj., Ser. C, Zero Coupon, 9/01/32, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   1,186,750</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A2</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Edl. Facs. Auth., Univ.
of San Diego Proj., Ser. A, 5.25%, 10/01/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,190,680</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,270</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Hlth. Facs. Fin. Auth.,
Insured Hlth. Facs. Valleycare Proj., Ser. A, 5.375%, 5/01/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,463,813</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Infrastructure &amp; Econ.
Dev.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000<sup> </sup></font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.25%, 6/01/07, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,216,120</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,600</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bay Area Toll Brdgs., Ser. A, 5.00%,
7/01/36, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,666,464</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,750</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. David Gladstone Inst. Proj.,
5.25%, 10/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,860,813</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,500<sup> </sup></font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rand Corp. Proj., Ser. A, 5.25%,
4/01/42, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,666,110</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Statewide Cmnty. Dev.
Auth.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kaiser Permanente Proj., Ser. A,
5.50%, 11/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,241,400</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,250</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sutter Hlth. Oblig. Grp. Proj.,
Ser. B, 5.625%, 8/15/42</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,399,630</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,845</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Foothill/Eastn. Transp. Corridor
Agcy., Toll Road Rev., 5.75%, 1/15/40</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/10 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,906,405</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A-1, 6.625%, 6/01/40</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,071,040</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A-1, 6.75%, 6/01/39</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,046,850</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 5.50%, 6/01/43</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,654,900</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,300</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 5.625%, 6/01/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,405,534</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,745</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Kaweah Delta Hlth. Care Dist., 6.00%,
8/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,883,972</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Lathrop Fin. Auth., Wtr. Sply. Proj.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">655</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.90%, 6/01/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">660,711</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,180</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.00%, 6/01/35</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,201,311</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Live Oak Unified Sch. Dist., XLCA,
Cap. Apprec. Election Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">795</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, Zero Coupon, 8/01/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/18 @ 52.942</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">197,995</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">830</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, Zero Coupon, 8/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/18 @ 50.064</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">195,199</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">865</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, Zero Coupon, 8/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/18 @ 47.332</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">192,549</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">905</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, Zero Coupon, 8/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/18 @ 44.74</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">189,489</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">945</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, Zero Coupon, 8/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/18 @ 42.283</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">186,732</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">705</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. N, Zero Coupon, 8/01/29</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/18 @ 55.976</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">185,894</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">B-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Los Angeles Regl. Arpt. Impvt., Corp.
Lease Rev., Amer. Airlines, Inc. Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 7.50%, 12/01/24</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/12 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,010,200</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">B-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">680</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Los Angeles Regl. Arpt. Impvt., Corp.
Lease Rev., Amer. Airlines, Inc. Proj., Ser. C, 7.50%,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/12 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">691,920</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Multi-Fam. Hsg.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Aaa</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,240</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;San Lucas Apts. Proj., Ser. 5,
Zero Coupon, 11/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,370,592</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Aaa</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,410</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Westgate Courtyard Apts. Proj.,
Ser. 3, Zero Coupon, 11/01/34 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,526,042</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,400</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Orange Cnty. Cmnty. Facs. Dist.,
Spl. Tax Rev., Ladera Ranch Proj., Ser. A, 6.00%, 8/15/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/10 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,536,224</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Palm Springs Mobile Home Park, Sahara
Mobile Home Park Proj., 5.75%, 5/15/37</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,139,290</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Francisco City &amp; Cnty. Redev.
Agcy., Cmnty. Facs. Dist., Mission Bay South Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.25%, 8/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,578,975</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Santa Ana Unified Sch. Dist., COP,
Zero Coupon, 4/01/29, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,347,750</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Santa Clara Valley Wtr. Dist., Wtr.
Util. Sys. Rev., Ser. A, 5.125%, 6/01/31, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/10 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,594,550</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Statewide Cmnty. Dev. Auth., Daughters
of Charity Health Proj., Ser. A, 5.25%, 7/01/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/15 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,539,600</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Torrance Hosp. Rev., Torrance Mem.
Med. Ctr. Proj., Ser. A, 5.50%, 6/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,557,915</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">70,763,419</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Multi-State&#151;7.6%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Baa1</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,500<sup> </sup></font></td>
<td><font size="2"><sup>6</sup></font></td>
<td align=left><font size="2">Charter Mac Equity Issuer Trust,
Ser. B-2, 7.20%, 10/31/52</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,974,705</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Long-Term Investments (cost
$69,781,384)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">74,738,124</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>SHORT-TERM INVESTMENTS&#151;17.1%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>California&#151;7.2%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">A-1+</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,300<sup> </sup></font></td>
<td><font size="2"><sup>7</sup></font></td>
<td align=left><font size="2">California Econ. Recovery, Ser. C-5,
1.80%, 3/01/05, FRDD</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,300,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-1+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500<sup> </sup></font></td>
<td><font size="2"><sup>7</sup></font></td>
<td align=left><font size="2">Newport Beach Rev., Hoag Mem. Presbyterian
Hosp. Proj., 1.80%, 3/01/05, FRDD</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,800,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font></font><tr><td>&nbsp;</td></tr></table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p align='center'><font size="2">27</font>
<HR noshade size=4><PAGE><p>

<p><font size="3"><b>BlackRock California Municipal Bond Trust
(BZA) (continued)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2">&nbsp;</font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Shares</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
      <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><center>
      <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>    </td>
  </tr><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>MONEY MARKET FUNDS&#151;9.9%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 2,600</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">AIM Tax Free Investment Co. Cash
Reserve Portfolio</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   2,600,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,600</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">SSgA Tax Free Money Mkt. Fund</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,600,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,200,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Short-Term Investments (cost
$9,000,000)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,000,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;159.3%
(cost $78,781,384)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  83,738,124</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Liabilities in excess of other assets&#151;(2.3)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(1,184,826)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(57.0)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(29,976,304)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  52,576,994</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup>
</font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

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

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

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

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>6</sup> </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
28, 2005, the Trust held 7.6% of its net assets, with a current market value of
$3,974,705, in securities restricted as to resale.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>7</sup> </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">For purposes of amortized cost valuation,
the maturity date of this instrument is considered to be the earlier of the next
date on which the security can be redeemed at par, or the next date on which the
rate of interest is adjusted. Rate shown as of February 28, 2005.</font></td><td>&nbsp;</td></tr></table>
<p>
<p>
<p><p><p><p align="center">
<hr size="1" noshade>
<center>
  <font size="2"><b>KEY TO ABBREVIATIONS</b></font>
</center>
<p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <td align=left><font size="2"><font size="2">AMBAC</font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; American Municipal Bond Assurance
Corp.</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">FSA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Financial Security Assurance</font></td>

</tr>
<tr valign=top><td align=left><font size="2">COP</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Certificate of Participation</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">MBIA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Municipal Bond Insurance Association</font></td>
</tr>
<tr valign=top><td align=left><font size="2">FGIC</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Financial Guaranty Insurance
Co.</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">XLCA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; XL Capital Assurance</font></td>
</tr>
<tr valign=top><td align=left><font size="2">FRDD</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Floating Rate Daily Demand</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"></font>
<tr valign=top>
  <td colspan="7" align=left><hr size="1" noshade>    </td>
  </table>
<p align="center"> <font size="2">See Notes to Financial Statements.</font>
<p align='center'><font size="2">28</font>
<HR noshade size=4><PAGE><p>
<font size="3"><b>PORTFOLIO OF INVESTMENTS </b><b>(unaudited)</b><b><br>FEBRUARY
28, 2005</b></font>
<p><font size="3"><b>BlackRock California Municipal Income Trust
       II (BCL)</b></font>


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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>California&#151;149.6%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Anaheim Pub. Fin. Auth., Pub. Impvt.
Proj., Ser. C, FSA,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$15,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 9/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   3,197,400</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 9/01/36</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,919,500</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California, GO, 5.50%, 11/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,693,600</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,000<sup> </sup></font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">California Dept. of Wtr. Res., Pwr.
Sply. Rev., Ser. A, 5.375%, 5/01/21</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,538,500</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Infrastructure &amp; Econ.
Dev., Ser. A,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,100</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bay Area Toll Brdgs., 5.00%, 7/01/36,
AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,353,394</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,735</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kaiser Hosp. Asst. LLC Proj., 5.55%,
8/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/11 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,821,646</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rand Corp. Proj., 5.25%, 4/01/42,
AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,618,650</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Mobilehome Park Fin. Auth.,
Palomar Estates East &amp; West, </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.25%, 3/15/34, ACA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">03/13 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,601,710</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Statewide Cmnty. Dev.
Auth.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kaiser Permanente Proj., Ser. A,
5.50%, 11/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,241,400</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mem. Hlth. Svcs. Proj., Ser. A,
5.50%, 10/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,338,940</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sutter Hlth. Oblig. Corp. Proj.,
Ser. B, 5.50%, 8/15/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,357,280</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Corona Norco Unified Sch. Dist.,
Spec. Tax Rev., Cmnty. Facs. Dist. No. 98-1 Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10%, 9/01/32, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,219,120</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Foothill/Eastn. Transp. Corridor
Agcy., Toll Road Rev.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,550</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 1/15/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/10 @ 30.966</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,504,273</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,470<sup> </sup></font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, Zero Coupon, 1/01/26</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">ETM</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,823,527</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,890<sup> </sup></font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, Zero Coupon, 1/01/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">ETM</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,442,696</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,900</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A-1, 6.625%, 6/01/40</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,003,008</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,100</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A-1, 6.75%, 6/01/39</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,620,035</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,650</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 5.50%, 6/01/43</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,000,074</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 5.625%, 6/01/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,243,540</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">La Quinta Redev. Agcy. Tax Alloc.,
Redev. Proj. Area No. 1, 5.125%, 9/01/32, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/12 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,251,100</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Lathrop Fin. Auth., Wtr. Sply. Proj.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,490</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.90%, 6/01/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,502,993</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,680</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.00%, 6/01/35</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,728,401</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Los Angeles Dept. of Wtr. &amp; Pwr.,
Wtr. Wks. Rev., Ser. A, 5.125%, 7/01/41, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,699,375</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">B-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,785</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Los Angeles Regl. Arpt. Impvt., Corp.
Lease Rev., Amer. Airlines, Inc. Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. C, 7.50%,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/12 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,816,291</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Oxnard Impvt. Bond, Dist. No. 1 Spec.
Assmt., 1 Rice Ave. Proj.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,910</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.625%, 9/02/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">03/05 @ 103</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,917,869</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,905</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.70%, 9/02/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">03/05 @ 103</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,913,058</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Poway Unified Sch. Dist., Spl. Tax
Rev., Cmnty. Facs. Dist. No. 6 Proj.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.50%, 9/01/25</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/10 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,501,620</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,700</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.60%, 9/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/10 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,707,327</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,470</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Rohnert Park Fin. Auth., Rancho Feliz
Mobile Home Park Proj., Ser. A, 5.625%, 9/15/28</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,414,820</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Sacramento City Fin. Auth., Cap.
Impvt., Ser. A, 5.00%, 12/01/32, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,156,400</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Bernardino Cnty., Spl. Tax Rev.,
Cmnty. Facs., 5.90%, 9/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/12 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,017,280</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,665</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Diego Unified Sch. Dist., Ser.
D, 5.25%, 7/01/23, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,765,542</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Francisco City &amp; Cnty. Redev.
Agcy., Cmnty. Facs. Dist., Mission Bay South Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.25%, 8/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,157,950</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">30,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Joaquin Hills Transp. Corridor
Agcy., Toll Road Rev. Proj., Ser. A, Zero Coupon, </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1/15/34, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,608,700</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Jose Multi-Fam. Hsg., Helzer
Courts Apts. Proj., Ser. A, 6.40%, 12/01/41</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/09 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,589,280</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Santa Clarita Facs. Dist., Valencia
Town Ctr. Proj.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,640</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.80%, 11/15/25</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/10 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,662,288</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.85%, 11/15/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/10 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,528,680</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,685</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Santa Rosa Wstwtr., Ser. B, Zero
Coupon, 9/01/25, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">971,970</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,200</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">So. Tahoe Joint Pwr. Fin. Auth.,
So. Tahoe Redev. Proj. 1-A, 5.45%, 10/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,248,268</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,600</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Tobacco Sec. Auth. So. California,
Tobacco Settlement Rev., Ser. A, 5.625%, 6/01/43</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,519,728</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Tustin Unified Sch. Dist., Spec.
Tax Rev., Cmnty. Facs. Dist. 97-1 Proj., Ser. B, 5.60%, 9/01/29</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,026,280</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Univ. of California, Ser. A, 5.00%,
5/15/33, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,070,580</font><tr><td>&nbsp;</td></tr></table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p>
<p align='center'><font size="2">29</font>
<HR noshade size=4><PAGE><p>

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


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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">NR</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 1,170</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Val Verde Unified Sch. Dist. Fin.
Auth., Spec. Tax Rev., 6.25%, 10/01/28</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   1,220,532</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Aaa</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000<sup> </sup></font></td>
<td><font size="2"><sup>6</sup></font></td>
<td align=left><font size="2">Vernon Elec. Sys., Malburg Generating
Station Proj., 5.50%, 4/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,172,920</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">176,707,545</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Multi-State&#151;3.6%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Charter Mac Equity Issuer Trust,</font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">500<sup> </sup></font></td>
<td><font size="2"><sup>7</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.75%, 4/30/15</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">521,050</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000<sup> </sup></font></td>
<td><font size="2"><sup>7</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 6.00%, 4/30/19</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,046,640</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa1</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500<sup> </sup></font></td>
<td><font size="2"><sup>7</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 6.00%, 4/30/15</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,562,385</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa1</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000<sup> </sup></font></td>
<td><font size="2"><sup>7</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 6.30%, 4/30/19</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,050,710</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,180,785</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Long-Term Investments (cost
$170,896,982)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">180,888,330</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>SHORT-TERM INVESTMENTS&#151;5.5%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,900</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">AIM Tax Free Investment Co. Cash
Reserve Portfolio</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,900,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">650</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">SSgA Tax Free Money Mkt. Fund</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">650,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Short-Term Investments (cost
$6,550,000)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,550,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;158.7%
(cost $177,446,982)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  187,438,330</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Other assets in excess of liabilities&#151;2.2%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,644,179</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(60.9)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(71,968,192)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  118,114,317</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup>
</font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

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

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

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

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>6</sup> </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">This bond is prerefunded. U.S. government
securities, held in escrow, are used to pay interest on this security, as well as
retire the bond in full at the date indicated, typically at a premium to par.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>7</sup> </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
28, 2005, the Trust held 3.6% of its net assets, with a current market value of
$4,180,785, in securities restricted as to resale.</font></td><td>&nbsp;</td></tr></table>
<p><p><p><p align="center">
<hr size="1" noshade>
<center>
  <font size="2"><b>KEY TO ABBREVIATIONS</b></font>
</center>
<p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <td align=left><font size="2"><font size="2">ACA</font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; American Capital Access</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">FSA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Financial Security Assurance</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">AMBAC</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; American Municipal Bond Assurance
Corp.</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">GO</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; General Obligation</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">ETM</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Escrowed to Maturity</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">MBIA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Municipal Bond Insurance Association</font></td>

<td>&nbsp;</td></tr>
</table>
<hr size="1" noshade>

<p>&nbsp;</p>
<p align="center"> <font size="2">See Notes to Financial Statements.</font>
<p align='center'>
<p align='center'><font size="2">30</font>
<hr noshade size=4><PAGE>
<p><font size="3"><b>PORTFOLIO OF INVESTMENTS </b><b>(unaudited)</b><b><br>FEBRUARY
28, 2005</b></font>
<p><font size="3"><b>BlackRock Florida Insured Municipal Income
Trust (BAF)</b></font>
  <br>
  <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
        <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
        <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>
    </td>
  </tr>
<tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM INVESTMENTS&#151;155.7%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Florida&#151;148.6%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Capital Trust Agcy. Multi-Fam., American
Oppty. Proj.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa1</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.875%, 12/01/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$     971,470</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">995</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. C, 7.25%, 12/01/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">964,533</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,935</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Colonial Cntry. Club Cmnty. Dev.
Dist., 6.40%, 5/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/13 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,162,482</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Florida Brd. of Ed.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GO, Ser. A, 5.00%, 6/01/27, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,413,730</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,640<sup> </sup></font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lottery Rev., Ser. C, 5.00%, 1/01/22,
MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/13 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,197,453</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Florida Dept. of Transp., 5.00%,
7/01/27, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,324,590</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,695</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Gainesville Util. Sys., Ser. A, 5.00%,
10/01/33, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,020,019</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Highlands Cnty. Hlth. Facs. Auth.,
Adventist/Sunbelt Proj., Ser. A, 6.00%, 11/15/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,210,770</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,580</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Hillsborough Cnty. Sch. Brd., COP,
Ser. A, 5.00%, 7/01/25, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/10 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,845,452</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excise Tax, Ser. B, 5.00%, 10/01/26,
AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,369,120</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales Tax, 5.00%, 10/01/27, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,951,725</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transp., 5.00%, 10/01/31, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,794,785</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,865</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Jacksonville Cap. Impvt., Ser. A,
5.00%, 10/01/30, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,967,194</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,480</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Julington Creek Plantation Cmnty.
Dev., Assmt. Rev., 5.00%, 5/01/29, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,540,251</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Lake Cnty. Sch. Brd., COP, Ser. A,
5.00%, 7/01/28, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,353,520</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">26,935</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Miami Dade Cnty., Spec. Oblig. Rev.,
Ser. B, Zero Coupon, 10/01/31, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/08 @ 28.079</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,307,100</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,975</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Orange Cnty., Sales Tax, Ser. B,
5.125%, 1/01/32, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,348,549</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Orange Cnty. Sch. Brd., COP, Ser.
A, 5.00%, 8/01/27, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,077,680</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,250</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Orange Cnty. Tourist Dev., Tax Rev.,
5.125%, 10/01/30, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,630,915</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Osceola Cnty. Sch. Brd., COP, Ser.
A, 5.25%, 6/01/27, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,307,520</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Palm Bay Util., FGIC,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,015</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 10/01/28</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,233,127</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,570</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero Coupon, 10/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,441,906</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,200</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Palm Beach Cnty. Sch. Brd., COP,
Ser. D, 5.00%, 8/01/28, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,527,888</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Pinellas Cnty. Hlth. Fac. Auth.,
Baycare Hlth. Sys. Proj., 5.50%, 11/15/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,241,500</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Pinellas Cnty. Swr., 5.00%, 10/01/32,
FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,862,045</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Polk Cnty. Util. Sys., 5.00%, 10/01/29,
FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,212,250</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">825<sup> </sup></font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">Port St. Lucie Util., 5.125%, 9/01/31,
MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">911,856</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,945</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Sarasota Cnty. Util. Sys., Ser. C,
5.25%, 10/01/22, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,203,571</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">St. Petersburg Pub. Util., Ser. A,
5.00%, 10/01/28, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/09 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,623,760</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Tampa Bay Wtr. Util. Sys., Ser. A,
5.00%, 10/01/28, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,070,140</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Tohopekaliga Wtr. Auth., Ser. B,
FSA,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,980</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.00%, 10/01/21</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,110,660</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.00%, 10/01/23</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,060,050</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Vlg. Cmnty. Dev. Dist., Assmt. Rev.,
</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">150</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 5.40%, 5/01/07</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">151,878</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,730</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No. 5, Spl. Assmt. Rev., Ser. A,
6.50%, 5/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/13 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,051,072</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Vlg. Cntr. Cmnty. Dev. Dist., Ser.
A, 5.00%, 11/01/32, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/13 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12,408,120</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">193,868,681</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font></font><tr><td>&nbsp;</td></tr></table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p align='center'><font size="2">31</font>
<HR noshade size=4><PAGE><p>

<p><font size="3"><b>BlackRock Florida Insured Municipal Income
Trust (BAF) (continued)</b></font>

<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
        <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
        <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>
    </td>
  </tr><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>Puerto Rico&#151;7.1%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 9,405</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Children&#146;s Trust Fund, Tobacco
Settlement Rev., 5.625%, 5/15/43</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   9,211,351</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Long-Term Investments (cost
$195,839,943)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">203,080,032</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td colspan="2" align=center><font size="2"><b>Shares</b></font></td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center></td>

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

<td>&nbsp;</td></tr>
<tr valign=top>
  <td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>MONEY MARKET FUND&#151;0.3%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">400</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">AIM Tax Free Investment Co. Cash
Reserve Portfolio (cost $400,000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">400,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;156.0%
(cost $196,239,943)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 203,480,032</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Other assets in excess of liabilities&#151;2.3%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,001,763</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(58.3)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(76,027,694)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 130,454,101</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup>
</font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

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

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

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

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

<p><font size="2">The value (market value plus accrued interest) of securities that
are covered by insurance, which ensures the payment of principal and interest, represent
approximately 82.7% of the Trust&#146;s managed assets.</font>
<p><p><p>
<hr size="1" noshade>
<center>
  <font size="2"><b>KEY
  TO ABBREVIATIONS</b></font>
</center>
<p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td align=left><font size="2"><font size="2">AMBAC</font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; American Municipal Bond Assurance
Corp.</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">FSA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Financial Security Assurance</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">COP</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Certificate of Participation</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">GO</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; General Obligation</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">FGIC</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Financial Guaranty Insurance
Co.</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">MBIA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Municipal Bond Insurance Association</font></table>
<hr size="1" noshade>
<p align="center"><font size="2">See Notes to Financial Statements.</font>
<p align='center'><font size="2">32</font>
<HR noshade size=4><PAGE><p>
<font size="3"><b>PORTFOLIO OF INVESTMENTS </b><b>(unaudited)</b><b><br>FEBRUARY
28, 2005</b></font>
<p><font size="3"><b>BlackRock Florida Municipal Bond Trust (BIE)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
        <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
        <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>
    </td>
  </tr><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM INVESTMENTS&#151;152.3%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Florida&#151;138.7%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 1,250</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Bay Cnty., Sales Tax Rev., 5.125%,
9/01/32, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   1,310,575</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Boynton Beach Multi-Fam., Clipper
Cove Apts. Proj., 5.30%, 1/01/23, ACA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,033,560</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa1</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Capital Trust Agcy. Multi-Fam. Hsg.,
American Oppty. Proj., Ser. A, 5.875%, 12/01/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">971,470</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,670</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Colonial Cntry. Club Cmnty. Dev.
Dist., 6.40%, 5/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/13 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,766,543</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,150</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Florida Mun. Loan Council, Ser. A,
5.125%, 5/01/32, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,302,775</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,335</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Gateway Svcs. Cmnty. Dev. Dist.,
Spec. Assmt., Stoneybrook Proj., 5.50%, 7/01/08</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,361,393</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,100</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Greater Orlando Aviation Auth., Orlando
Arpt. Facs. Proj., Ser. A, 5.125%, 10/01/32, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,194,374</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,900</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Highlands Cnty. Hlth. Facs. Auth.,
Adventist/Sunbelt Proj., Ser. A, 6.00%, 11/15/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,309,738</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,810</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Hillsborough Cnty. Ind. Dev. Auth.,
PCR, Tampa Elec. Co. Proj., 5.50%, 10/01/23</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,858,381</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Jacksonville Econ. Dev. Comm. Hlth.
Facs., Mayo Clinic Proj., Ser. B, 5.50%, 11/15/36</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,755,640</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">JEA, Ser. A,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000<sup> </sup></font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Elec. Sys., 5.50%, 10/01/07</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,315,400</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,425<sup> </sup></font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wtr. &amp; Swr. Sys., 5.375%, 10/01/30,
MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/07 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,689,252</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A1</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Lakeland Hosp. Sys., Lakeland Regl.
Hlth. Sys. Proj., 5.50%, 11/15/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,160,770</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Miami Beach Hlth. Facs. Auth., Mt.
Sinai Med. Ctr. Proj., 6.75%, 11/15/21</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,608,735</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Miami Dade Cnty., MBIA,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,410</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, Zero Coupon, 10/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/08 @ 26.494</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,194,961</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Spec. Oblig. Rev., Ser. A, Zero
Coupon, 10/01/26</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/08 @ 37.301</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,736,625</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Spec. Oblig. Rev., Ser. B, Zero
Coupon, 10/01/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/08 @ 29.688</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,478,500</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Orange Cnty. Hlth. Facs. Auth., Orlando
Regl. Hlth. Care Proj., 5.75%, 12/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,360,600</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,350</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Orange Cnty. Tourist Dev., Tax Rev.,
5.125%, 10/01/30, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,487,953</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,105</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Osceola Cnty. Tourist Dev., Tax Rev.,
Ser. A, 5.00%, 10/01/32, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,211,688</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,630</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Palm Bay Util., Zero Coupon, 10/01/28,
FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,114,882</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Palm Beach Cnty. Sch. Brd., COP,
Ser. C, 5.00%, 8/01/27, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,116,520</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500<sup> </sup></font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">Port St. Lucie Util., 5.125%, 9/01/11,
MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,657,920</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">So. Broward Hosp. Dist., 5.60%, 5/01/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,129,080</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,765</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Stevens Plantation Impvt., 6.375%,
5/01/13</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,814,667</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,815</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Sumter Cnty. Indl. Dev. Auth., No.
Sumter Util. Co. LLC Proj., 6.80%, 10/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/09 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,875,325</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,795</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Vlg. Cmnty. Dev. Dist., No. 5, Spl.
Assmt. Rev., Ser. A, 6.50%, 5/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/13 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,916,845</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Volusia Cnty Edl. Fac. Auth., Embry
Riddle Aeronautical Proj., RAA,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,250</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.20%, 10/15/26</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,313,687</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,610</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.20%, 10/15/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,681,500</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">73,729,359</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Multi-State&#151;6.4%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Baa1</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000<sup> </sup></font></td>
<td><font size="2"><sup>6</sup></font></td>
<td align=left><font size="2">Charter Mac Equity Issuer Trust,
Ser. B-2, 7.20%, 10/31/52</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,406,890</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Puerto Rico Pub. Bldgs. Auth., Gov&#146;t
Facs., Ser. D,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,565<sup> </sup></font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.25%, 7/01/12</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,847,535</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">935</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.25%, 7/01/36</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">978,898</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,826,433</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Long-Term Investments (cost
$75,381,489)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">80,962,682</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font></font><tr><td>&nbsp;</td></tr></table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p>
<p align='center'><font size="2">33</font>
<HR noshade size=4><PAGE><p>

<p><font size="3"><b>BlackRock Florida Municipal Bond Trust (BIE)
       (continued)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2">&nbsp;</font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Shares</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
        <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
        <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>
    </td>
  </tr><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>MONEY MARKET FUND&#151;0.7%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">400</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">AIM Tax Free Investment Co. Cash
Reserve Portfolio (cost $400,000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$&nbsp; &nbsp; &nbsp;     400,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;153.0%
(cost $75,781,489)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  81,362,682</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Other assets in excess of liabilities&#151;3.0%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,583,015</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(56.0)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(29,782,665)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  53,163,032</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

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

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

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

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>6</sup> </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
28, 2005, the Trust held 6.4% of its net assets, with a current market value of
$3,406,890, in securities restricted as to resale.</font></td><td>&nbsp;</td></tr></table>
<p><p><p>
<hr size="1" noshade>
<center>
  <font size="2"><b>KEY TO ABBREVIATIONS</b></font>
</center>
<p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td align=left><font size="2"><font size="2">ACA</font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; American Capital Access</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">FSA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Financial Security Assurance</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">AMBAC</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; American Municipal Bond Assurance
Corp.</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">MBIA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Municipal Bond Insurance Association</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">COP</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Certificate of Participation</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">PCR</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Pollution Control Revenue</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">FGIC</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Financial Guaranty Insurance
Co.</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">RAA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Radian Asset Assurance<font size="2"></font></font></table>
<hr size="1" noshade>
<p align="center"> <font size="2">See Notes to Financial Statements.</font>
<p>
<p align='center'><font size="2">34</font>
<HR noshade size=4><PAGE><p>
<font size="3"><b>PORTFOLIO OF INVESTMENTS </b><b>(unaudited)</b><b><br>FEBRUARY
28, 2005</b></font>
<p><font size="3"><b>BlackRock Maryland Municipal Bond Trust (BZM)</b></font>

<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
        <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
        <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>
    </td>
  </tr><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM INVESTMENTS&#151;153.9%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Maryland&#151;122.1%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">A3</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 2,870</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Anne Arundel Cnty. Econ. Dev., Cmnty.
Coll. Proj., 5.25%, 9/01/28</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/12 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   3,043,922</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Baltimore, Spec. Oblig. Rev., Harborview
Lot No. 2 Proj., 6.50%, 7/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/13 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,052,440</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Baltimore Cnty., GO,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000<sup> </sup></font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Met. 67th Dist., 5.00%, 6/01/22</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,134,200</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Met. 68th Dist., 5.00%, 8/01/28</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,094,440</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Baltimore Wstwtr. Proj., Ser. A,
FGIC,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.125%, 7/01/42</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,087,320</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.20%, 7/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,723,125</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">750</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">City of Annapolis Spec. Oblig., Park
Place Proj., Ser. A, 5.35%, 7/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/15 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">742,687</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR<sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Frederick Cnty., Urbana Cmnty. Dev.
Auth. Proj., 6.625%, 7/01/25</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/07 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,045,170</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Maryland Econ. Dev. Corp., Student
Hsg. Rev., Univ. of Maryland Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.75%, 10/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,562,760</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Maryland Hlth. &amp; Higher Edl.
Facs. Auth.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brd. of Child Care Proj., 5.375%,
7/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,122,180</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,990</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Carroll Cnty. Gen. Hosp. Proj.,
6.00%, 7/01/37</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,114,435</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">750</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goucher Coll. Proj., 5.375%, 7/01/25</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">804,217</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Johns Hopkins Univ. Proj., Ser.
B, 5.00%, 7/01/41</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,059,960</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loyola Coll. Issue Proj., 5.00%,
10/01/39</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/09 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,041,840</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Union Hosp. of Cecil Cnty. Proj.,
5.625%, 7/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,095,740</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Univ. of Maryland Med. Sys. Proj.,
5.25%, 7/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,053,960</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,905</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Maryland Ind. Dev. Fin. Auth., Econ.
Dev. Rev., Nat. Aquarium Baltimore Fac. Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 5.20%, 11/01/26</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000,555</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Maryland Transp. Auth., Arpt. Pkg.
Rev., Baltimore/Wash. Intl. Arpt. Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 5.125%, 3/01/24, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">03/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,081,620</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Montgomery Cnty. Lease, Metrorail
Garage Proj.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.00%, 6/01/23</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">529,535</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,435</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.00%, 6/01/24</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,515,145</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">St. Mary&#146;s Coll., Academic &amp;
Auxil. Fees, Ser. A, AMBAC,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.00%, 9/01/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,047,920</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.00%, 9/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,041,420</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">38,994,591</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Multi-State&#151;7.1%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Baa1</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000<sup> </sup></font></td>
<td><font size="2"><sup>6</sup></font></td>
<td align=left><font size="2">Charter Mac Equity Issuer Trust,
Ser. B-2, 7.20%, 10/31/52</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,271,260</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Puerto Rico&#151;24.7%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Children&#146;s Trust Fund, Tobacco
Settlement Rev., 5.50%, 5/15/39</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,982,080</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,060</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Puerto Rico Elec. Pwr. Auth., Ser.
HH, 5.25%, 7/01/29, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/10 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,220,618</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Puerto Rico Hwy. &amp; Transp. Auth.,
Ser. D, 5.25%, 7/01/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,090,080</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Puerto Rico Pub. Bldgs. Auth., Gov&#146;t
Facs., Ser. D,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,100<sup> </sup></font></td>
<td><font size="2"><sup>5</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.375%, 7/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,229,976</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">350</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.375%, 7/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">372,736</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,895,490</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;153.9%
(cost $46,049,823)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  49,161,341</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Other assets in excess of liabilities&#151;2.5%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">783,512</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(56.4)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(18,003,156)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  31,941,697</font></td>

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


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

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

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

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

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">This bond is prerefunded. U.S. government
securities, held in escrow, are used to pay interest on this security, as well as
retire the bond in full at the date indicated, typically at a premium to par.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>6</sup> </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
28, 2005, the Trust held 7.1% of its net assets, with a current market value of
$2,271,260, in securities restricted as to resale.</font></td><td>&nbsp;</td></tr></table>
<p>
<p>
<hr size="1" noshade>
<center>
  <font size="2"><b>KEY TO ABBREVIATIONS</b></font>
</center>
<p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td align=left><font size="2"><font size="2">AMBAC</font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; American Municipal Bond Assurance
Corporation</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">GO</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; General Obligation</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">FGIC</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Financial Guaranty Insurance
Company</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">FSA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Financial Security Assurance</font></table>
<hr size="1" noshade>
<p align="center"> <font size="2">See Notes to Financial Statements.</font></p>
<p><p align='center'><font size="2">35</font>
<HR noshade size=4><PAGE><p>
<font size="3"><b>PORTFOLIO OF INVESTMENTS (</b><b>unaudited)</b><b><br>FEBRUARY
28, 2005</b></font>
<p><font size="3"><b>BlackRock New Jersey Municipal Bond Trust
(BLJ)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
        <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
        <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>
    </td>
  </tr><tr valign=top><td align=left><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM INVESTMENTS&#151;153.7%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Multi-State&#151;6.4%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Baa1</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 2,000<sup> </sup></font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">Charter Mac Equity Issuer Trust,
Ser. B-2, 7.20%, 10/31/52</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   2,271,260</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=center>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=right>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=left><font size="2"><b>New Jersey&#151;127.5%</b></font></td>
  <td>&nbsp;</td>
  <td align=right>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=center>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=right>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Garden St. Pres. Trust, Open Space
&amp; Farmland Pres. Proj., Ser. B, Zero Coupon, 11/01/27, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,347,360</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New Jersey Econ. Dev. Auth.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cigarette Tax Rev., 5.75%, 6/15/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,086,500</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">B</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,335</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continental Airlines, Inc. Proj.,
7.00%, 11/15/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/10 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,014,872</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fellowship Vlg. Proj., Ser. A,
5.50%, 1/01/25</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/08 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,010,840</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,250</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kapkowski Road Landfill Proj.,
6.50%, 4/01/28</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,601,337</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sld. Wst. Rev., Disp. Wst. Mgmt.
Proj., Ser. A, 5.30%, 6/01/15</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,068,320</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Aaa</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,750</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Victoria Hlth. Proj., Ser. A, 5.20%,
12/20/36</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/11 @ 103</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,856,050</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Winchester Proj., Ser. A, 5.80%,
11/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,598,625</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New Jersey Edl. Facs. Auth.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fairleigh Dickinson Univ. Proj.,
Ser. C, 5.50%, 7/01/23</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">523,355</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fairleigh Dickinson Univ. Proj.,
Ser. C, 6.00%, 7/01/20</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,085,390</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fairleigh Dickinson Univ. Proj.,
Ser. D, 6.00%, 7/01/25</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,069,460</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">630</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Georgian Court Coll. Proj., Ser.
C, 6.50%, 7/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">704,592</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New Jersey Hlth. Care Fac. Fin. Auth.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Atlantic City Med. Ctr. Proj.,
5.75%, 7/01/25</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,119,860</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Catholic Hlth. East Proj., Ser.
A, 5.375%, 11/15/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,071,840</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A2</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000<sup> </sup></font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kennedy Hlth. Sys. Proj., 5.625%,
7/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,112,420</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa1</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So. Jersey Hosp. Proj., 6.00%,
7/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,639,050</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,250</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New Jersey Hsg. &amp; Mtg. Fin. Agcy.,
Multi-Fam. Hsg. Rev., Ser. A, 5.65%, 5/01/40, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/07 @ 101.5</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,336,962</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Port Auth. of NY &amp; NJ,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Caa2</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">130</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contl./Eastn. LaGuardia Proj.,
9.125%, 12/01/15</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">03/05 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">130,218</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. 125, 5.00%, 4/15/32, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,566,345</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,250</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. 126, 5.25%, 5/15/37, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,359,058</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tobacco Settlement Fin. Corp.,
6.125%, 6/01/42</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,918,450</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Univ. of Med. &amp; Dentistry,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.00%, 12/01/31, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,038,290</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">750</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COP, 5.00%, 6/15/36, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">779,880</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Vineland, GO, MBIA,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.30%, 5/15/29</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/10 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,052,740</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.375%, 5/15/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/10 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,573,530</font></td>

<td>&nbsp;</td></tr>
<tr valign=top>
  <td colspan="14" align=left><HR noshade size=1></td>
  </tr>
<tr valign=top>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=center>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=right>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=right>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=center>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=right><div align="right"><font size="2">45,665,344</font></div></td>
  <td>&nbsp;</td>
</tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr><td>&nbsp;</td></tr></table>
<p><p align="center">
<font size="2">See Notes to Financial Statements</font>
<p><p align='center'><font size="2">36</font>
<HR noshade size=4><PAGE><p>

<p><font size="3"><b>BlackRock New Jersey Municipal Bond Trust
(BLJ) (continued)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
        <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
        <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>
    </td>
  </tr><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>Puerto Rico&#151;19.8%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">A-</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 2,250</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Puerto Rico Elec. Pwr. Auth., Ser.
2, 5.25%, 7/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   2,378,790</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,100</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Puerto Rico Hwy. &amp; Transp. Auth.,
Ser. D, 5.25%, 7/01/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,194,584</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Puerto Rico Pub. Bldgs. Auth., Gov&#146;t
Facs., Ser. D,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,685<sup> </sup></font></td>
<td><font size="2"><sup>5</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.25%, 7/01/12</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,870,603</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">615</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.25%, 7/01/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">649,772</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,093,749</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;153.7%
(cost $52,045,286)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  55,030,353</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Other assets in excess of liabilities&#151;2.8%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,014,185</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(56.5)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(20,232,370)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  35,812,168</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup>
</font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

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

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup> </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
28, 2005, the Trust held 6.4% of its net assets, with a current market value of
$2,271,260, in securities restricted as to resale.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup> </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">This bond is prerefunded. U.S. government
securities, held in escrow, are used to pay interest on this security, as well as
retire the bond in full at the date indicated, typically at a premium to par.</font></td><td>&nbsp;</td></tr></table>
<p align="center">
<hr size="1" noshade>
<center>
  <font size="2"><b>KEY TO ABBREVIATIONS</b></font>
</center>
<p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td align=left><font size="2"><font size="2">AMBAC</font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; American Municipal Bond Assurance
Corp.</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">FSA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Financial Security Assurance</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">COP</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Certificate of Participation</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">GO</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; General Obligation</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">FGIC</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Financial Guaranty Insurance
Co.</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">MBIA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Municipal Bond Insurance Association</font></table>
<hr size="1" noshade>
<p align="center"> <font size="2">See Notes to Financial Statements.</font>
<p align="center">
<p align='center'><font size="2">37</font>
<HR noshade size=4><PAGE><p>
<font size="3"><b>PORTFOLIO OF INVESTMENTS </b><b>(unaudited)</b><b><br>FEBRUARY
28, 2005</b></font>
<p><font size="3"><b>BlackRock New York Insured Municipal Income
       Trust (BSE)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
        <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
        <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>
    </td>
  </tr><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM INVESTMENTS&#151;156.0%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>New York&#151;143.1%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB-</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Herkimer Cnty. Indl. Dev. Agcy.,
Civic Fac. Rev., Coll. Fndtn., Inc. Student Hsg. </font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Proj., 6.25%, 8/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   1,019,500</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Met. Transp. Auth.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,085</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.00%, 11/15/25, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,139,347</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,470</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.00%, 11/15/30, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,792,707</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.25%, 11/15/31, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,315,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Dedicated Tax Fund, Ser. A, 5.00%,
11/15/31, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,163,350</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,660</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Refdg. Transp., Ser. E, 5.25%, 11/15/31,
FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,827,580</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Svc. Contract, Ser. A, 5.00%, 7/01/30,
AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,365,400</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York City Indl. Dev. Agcy., Lycee
Francais De Proj., Ser. A, 5.375%, 6/01/23, ACA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,586,975</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York City Transl. Fin. Auth.,
Ser. B, 5.00%, 5/01/30, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,227,700</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York City Trust Cultural Resources,
American Museum of Natural History </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proj., Ser. A, 5.00%, 7/01/44,
MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,169,150</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,320</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Cntys. Tobacco Trust III,
6.00%, 6/01/43</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,356,354</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Dorm. Auth.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brooklyn Law School Proj., Ser.
B, 5.125%, 7/01/30, XLCA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,246,600</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hosp. Lutheran Med. Proj., 5.00%,
8/01/31, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">02/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,239,960</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insured Fit Student Hsg. Corp.
Proj., 5.125%, 7/01/34, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,637,300</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,160</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iona Coll. Proj., 5.00%, 7/01/27,
XLCA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,291,551</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Aa3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Joachim &amp; Ann Residence Proj.,
5.25%, 7/01/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,086,100</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Memorial Sloan Kettering Ctr. Proj.,
Ser. 1, Zero Coupon, 7/01/30, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,876,900</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New York &amp; Presbyterian Hosp.
Proj., 5.00%, 8/01/32, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">02/08 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,111,050</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New York Univ. Proj., Ser. 2, 5.00%,
7/01/41, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,190,470</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sch. Dist. Fin., Ser. A, 5.00%,
4/01/31, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,072,640</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sch. Dist. Fin., Ser. D, 5.00%,
10/01/30, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,631,670</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,000<sup> </sup></font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;St. Barnabas Proj., Ser. A, 5.00%,
2/01/31, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,227,150</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000<sup> </sup></font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Univ. Dorm. Facs., 5.00%, 7/01/12,
MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,538,750</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Winthrop Univ. Hosp. Assoc. Proj.,
Ser. A, 5.25%, 7/01/31, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,120,800</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Urban Dev. Corp.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000<sup> </sup></font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 5.00%, 3/15/13, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,330,450</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500<sup> </sup></font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. C-1, 5.00%, 3/15/13, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,775,375</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Sales Tax Asset Receivable Corp.,
Ser. A, 5.00%, 10/15/32, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,274,740</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Triborough Brdg. &amp; Tunl. Auth.,
Ser. E, 5.00%, 11/15/32, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,361,200</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">TSASC, Inc., Tobacco Settlement Rev.,
Ser. 1, 5.75%, 7/15/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,074,640</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">138,050,409</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Puerto Rico&#151;12.9%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,600</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Children&#146;s Trust Fund, Tobacco
Settlement Rev., 5.625%, 5/15/43</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,443,516</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Puerto Rico Indl. Fin. Auth., Med.
&amp; Env. Ctrl. Facs., Polytechnic Univ. Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.00%, 8/01/32, ACA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,024,340</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12,467,856</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Long-Term Investments (cost
$144,871,076)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">150,518,265</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,200</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">AIM Tax Free Investment Co. Cash
Reserve Portfolio (cost $1,200,000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,200,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;157.3%
(cost $146,071,076)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  151,718,265</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Other assets in excess of liabilities&#151;0.8%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">765,593</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(58.1)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(56,009,203)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$    96,474,655</font></td>

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


<tr valign=top><td align=left><font size="2"></font><tr><td>&nbsp;</td></tr></table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p>
<p align='center'><font size="2">38</font>
<HR noshade size=4><PAGE><p>

<p><font size="3"><b>BlackRock New York Insured Municipal Income
       Trust (BSE) (continued)</b></font>
<p><p>
<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup>
</font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

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

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

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

<p><font size="2">The value (market value plus accrued interest) of securities that
are covered by insurance, which ensures the payment of principal and interest, represent
approximately 86.0% of the Trust&#146;s managed assets.</font>
<p><font size="2"></font><p>
<hr size="1" noshade>
<center>
  <font size="2"><b>KEY
  TO ABBREVIATIONS</b></font>
</center>
<p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td align=left><font size="2"><font size="2">ACA</font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; American Capital Access</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">FSA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Financial Security Assurance</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">AMBAC</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; American Municipal Bond Assurance
Corp.</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">MBIA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Municipal Bond Insurance Association</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">FGIC</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Financial Guaranty Insurance
Co.</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">XLCA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; XL Capital Assurance</font></table>
<hr size="1" noshade>
<p align="center"><font size="2">See Notes to Financial Statements.</font></p>
<p><p align='center'><font size="2">39</font>
<HR noshade size=4><PAGE><p>
<font size="3"><b>PORTFOLIO OF INVESTMENTS </b><b>(unaudited)</b><b><br>FEBRUARY
28, 2005</b></font>
<p><font size="3"><b>BlackRock New York Municipal Bond Trust (BQH)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
        <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
        <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>
    </td>
  </tr><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM INVESTMENTS&#151;154.3%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Multi-State&#151;6.7%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Baa1</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 2,500<sup> </sup></font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">Charter Mac Equity Issuer Trust,
Ser. B-2, 7.20%, 10/31/52</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   2,839,075</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>New York&#151;114.1%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Dutchess Cnty. Ind. Dev. Agcy., Civic
Facs. Rev., Vassar Coll. Proj., 5.35%, 9/01/40</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,131,720</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Met. Transp. Auth., Ded. Tax Fund,
Ser. A, 5.125%, 11/15/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,124,650</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York City, GO, Ser. D, 5.375%,
6/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,175,740</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,100</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York City Hlth. &amp; Hosp. Corp.,
Hlth. Sys., Ser. A, 5.375%, 2/15/26</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">02/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,139,600</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York City Hsg. Dev. Corp., Multi-Fam.
Hsg. Rev., Ser. A, 5.50%, 11/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,574,275</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York City Mun. Wtr. Fin. Auth.,
Ser. A, 5.25%, 6/15/33, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,629,400</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,445</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Cntys. Tobacco Trust III,
6.00%, 6/01/43</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,460,823</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Dorm. Auth.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,750<sup> </sup></font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;City Univ. Proj., Ser. A, 5.25%,
7/01/11</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,067,971</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iona Coll. Proj., 5.125%, 7/01/32,
XLCA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,613,925</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lenox Hill Hosp. Oblig. Grp. Proj.,
5.50%, 7/01/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,052,200</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Willow Towers, Inc. Proj., 5.40%,
2/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,644,875</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,750<sup> </sup></font></td>
<td><font size="2"><sup>5</sup></font></td>
<td align=left><font size="2">New York Env. Facs. Corp., Mun. Wtr.
Proj., Ser. D, 5.125%, 6/15/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,885,135</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Aa1</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,980</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Mtg. Agcy., Ser. 101, 5.40%,
4/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,025,981</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000<sup> </sup></font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">New York Urban Dev. Corp., Ser. A,
5.25%, 3/15/12</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,597,500</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Port Auth. of NY &amp; NJ,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Caa2</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,600</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contl./Eastn. LaGuardia Proj.,
9.125%, 12/01/15</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">03/05 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,604,368</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales Tax Asset Receivable Corp.,
Ser. A, 5.00%, 10/15/32, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">522,890</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,750</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. 126, 5.25%, 5/15/37, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,883,293</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Suffolk Cnty. Indl. Dev. Agcy., Keyspan
Port Jefferson Proj., 5.25%, 6/01/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">515,475</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">TSASC, Inc., Tobacco Settlement Rev.,
Ser. 1, 5.75%, 7/15/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,037,320</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">48,687,141</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Puerto Rico&#151;32.0%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,650</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Children&#146;s Trust Fund, Tobacco
Settlement Rev., 5.625%, 5/15/43</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,574,846</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Puerto Rico Elec. Pwr. Auth., Ser.
2, 5.25%, 7/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,114,480</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Puerto Rico Hwy. &amp; Transp. Auth.,
Ser. D, 5.25%, 7/01/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,090,080</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Puerto Rico Pub. Bldgs. Auth., Gov&#146;t
Facs., Ser. D,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,980<sup> </sup></font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.25%, 7/01/12</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,198,097</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">720</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.25%, 7/01/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">760,709</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Puerto Rico Pub. Impvt., Ser. A,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">925<sup> </sup></font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.125%, 7/01/11</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,025,668</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,825</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.125%, 7/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,884,039</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,647,919</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Trust Territories&#151;1.5%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Ba3</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">635</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Northern Mariana Islands Commerce,
Ser. A, 6.75%, 10/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">657,923</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Long-Term Investments (cost
$61,700,703)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">65,832,058</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td colspan="2" align=center><font size="2"><b>Shares</b></font></td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='16' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>MONEY MARKET FUND</b><b>&#151;0.8%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">350</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">AIM Tax Free Investment Co. Cash
Reserve Portfolio (cost $350,000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">350,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;155.1%
(cost $62,050,703)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  66,182,058</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Other assets in excess of liabilities&#151;1.6%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">689,232</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(56.7)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(24,205,767)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  42,665,523</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup> </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
28, 2005, the Trust held 6.7% of its net assets, with a current market value of
$2,839,075, in securities restricted as to resale.</font></td>

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

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left></td><td>&nbsp;</td></tr></table>
<p>
<hr size="1" noshade>
<center>
  <font size="2"><b>KEY TO ABBREVIATIONS</b></font>
</center>
<p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td align=left><font size="2"><font size="2">AMBAC</font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; American Municipal Bond Assurance
Corp.</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">GO</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; General Obligation</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">FGIC</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Financial Guaranty Insurance
Co.</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">XLCA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; XL Capital Assurance</font></table>
<hr size="1" noshade>
<p align="center"> <font size="2">See Notes to Financial Statements.</font></p>
<p><p align='center'><font size="2">40</font>
<HR noshade size=4><PAGE><p>
<font size="3"><b>PORTFOLIO OF INVESTMENTS (</b><b>unaudited)</b><b><br>FEBRUARY
28, 2005</b></font>
<p><font size="3"><b>BlackRock New York Municipal Income Trust
II (BFY)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
        <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
        <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>
    </td>
  </tr><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM INVESTMENTS&#151;158.7%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Multi-State&#151;5.7%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Charter Mac Equity Issuer Trust,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  500<sup> </sup></font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.75%, 4/30/15</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$     521,050</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000<sup> </sup></font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 6.00%, 4/30/19</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,046,640</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa1</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500<sup> </sup></font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 6.00%, 4/30/15</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,562,385</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa1</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000<sup> </sup></font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. B, 6.30%, 4/30/19</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,050,710</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,180,785</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>New York&#151;145.3%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Aaa</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,750</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Clarence Indl. Dev. Agcy., Civic
Fac. Rev., Bristol Vlg. Proj., 6.00%, 1/20/44</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/13 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,900,185</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Dutchess Cnty. Ind. Dev. Agcy., Civic
Facs. Rev., Vassar Coll. Proj., 5.35%, 9/01/40</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,263,440</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">625</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Essex Cnty. Indl. Dev. Agcy., Sld.
Wst. Disp. Rev., Intl. Paper Co. Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.50%, 10/01/26</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">633,075</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,250</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Geneva Indl. Dev. Agcy., Civic Fac.
Rev., Hobart &amp; William Smith Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. A, 5.375%, 2/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">02/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,426,345</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">385</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Herkimer Cnty. Indl. Dev. Agcy.,
Civic Fac. Rev., Coll. Fndtn., Inc. Student Hsg. Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.25%, 8/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">392,508</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,515</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Long Island Pwr. Auth., Elec. Sys.
Rev., Ser. A, Zero Coupon, 6/01/28, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,143,465</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Met. Transp. Auth., Ser. A,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.25%, 11/15/31, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,126,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ded. Tax Fund, 5.00%, 11/15/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,121,600</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Svc. Contract Rev., 5.125%, 1/01/29</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,211,950</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New York City, GO, Ser. B, 5.75%,
12/01/22</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,553,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York City Indl. Dev. Agcy.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eger Harbor Proj., Ser. A, 4.95%,
11/20/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,027,890</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eger Harbor Proj., Ser. A, 5.875%,
5/20/44</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 105</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,123,470</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indl. Dev. Rev., Empowerment Zone
Harlem Mall Proj., 5.125%, 12/30/23</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,030,680</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lycee Francais De Proj., Ser. A,
5.375%, 6/01/23, ACA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,552,185</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York City Mun. Wtr. Fin. Auth.,
Ser. A, 5.125%, 6/15/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,207,650</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000<sup> </sup></font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">New York City Trans. Auth., Met.
Transp. Auth., Triborough Brdg. &amp; Tunl. Auth. Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COP, Ser. A, 5.25%, 1/01/10, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,550,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York City Trans. Fin. Auth.,
Ser. B, 5.00%, 11/01/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,206,250</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,535</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Cntys. Tobacco Trust III,
6.00%, 6/01/43</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,562,758</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Dorm. Auth.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brooklyn Law School Proj., Ser.
B, 5.125%, 7/01/30, XLCA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,623,300</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Aa3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kateri Residence Proj., 5.00%,
7/01/22</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,063,080</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Memorial Sloan Kettering Ctr. Proj.,
Ser. 1, 5.00%, 7/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,154,200</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mount St. Mary Coll. Proj., 5.00%,
7/01/32, RAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,056,100</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,425</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New York Univ. Proj., 5.00%, 7/01/31,
MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500,393</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500<sup> </sup></font></td>
<td><font size="2"><sup>5</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;St. Barnabas Proj., Ser. A, 5.00%,
2/01/31, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,581,125</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000<sup> </sup></font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Univ. Dorm. Facs. Proj., 5.00%,
7/01/12</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,521,650</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Energy Res. &amp; Dev. Auth.,
Facs. Rev., 4.70%, 6/01/36</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/05 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,518,040</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000<sup> </sup></font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">New York Urban Dev. Corp., Ser. C-1,
5.00%, 3/15/13</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,532,250</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Caa2</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,675</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Port Auth. of NY &amp; NJ, Contl./Eastn.
LaGuardia Proj., 9.125%, 12/01/15</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">03/05 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,681,174</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Sales Tax Asset Receivable Corp.,
Ser. A, 5.00%, 10/15/32, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,045,780</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Suffolk Cnty. Indl. Dev. Agcy., Keyspan
Port Jefferson Proj., 5.25%, 6/01/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,577,375</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Triborough Brdg. &amp; Tunl. Auth.,
Ser. A, 5.00%, 1/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,029,640</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">TSASC, Inc., Tobacco Settlement Rev.,
Ser. 1, 5.75%, 7/15/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,111,960</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">107,028,518</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Puerto Rico&#151;6.1%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,400</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Children&#146;s Trust Fund, Tobacco
Settlement Rev., 5.625%, 5/15/43</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,371,174</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Puerto Rico Hwy. &amp; Transp. Auth.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. D, 5.375%, 7/01/36</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,129,920</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ser. G, 5.00%, 7/01/42</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,024,570</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,525,664</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font></font><tr><td>&nbsp;</td></tr></table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p align='center'><font size="2">41</font>
<HR noshade size=4><PAGE><p>

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


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
        <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
        <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>
    </td>
  </tr><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>Trust Territories&#151;1.6%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Ba3</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 1,105</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Northern Mariana Islands Commerce,
Ser. A, 6.75%, 10/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$&nbsp; &nbsp;   1,144,890</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Long-Term Investments (cost
$111,514,728)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">116,879,857</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td colspan="2" align=center><font size="2"><b>Shares</b></font></td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='16' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>MONEY MARKET FUND&#151;1.2%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;159.9%
(cost $112,414,728)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 117,779,857</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Other assets in excess of liabilities&#151;0.7%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">513,916</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(60.6)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(44,657,642)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$&nbsp; &nbsp;  73,636,131</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup>
</font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup> </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
28, 2005, the Trust held 5.7% of its net assets, with a current market value of
$4,180,785, in securities restricted as to resale.</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup> </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Entire or partial principal amount
pledged as collateral for financial futures contracts.</font></td><td>&nbsp;</td></tr></table>
<p>
<hr size="1" noshade>
<center>
  <font size="2"><b>KEY TO ABBREVIATIONS</b></font>
</center>
<p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td align=left><font size="2"><font size="2">ACA</font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; American Capital Access</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">GO</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; General Obligation</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">AMBAC</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; American Municipal Bond Assurance
Corp.</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">MBIA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Municipal Bond Insurance Association</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">COP</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Certificate of Participation</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">RAA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Radian Asset Assurance</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">FGIC</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Financial Guaranty Insurance
Co.</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">XLCA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; XL Capital Assurance</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">FSA</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&#151; Financial Security Assurance<font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"></font></table>
<hr size="1" noshade>
<p align="center"> <font size="2">See Notes to Financial Statements.</font>
<p>
<p align='center'><font size="2">42</font>
<HR noshade size=4><PAGE><p>
<font size="3"><b>PORTFOLIO OF INVESTMENTS (</b><b>unaudited)</b><b><br>FEBRUARY
28, 2005</b></font>
<p><font size="3"><b>BlackRock Virginia Municipal Bond Trust (BHV)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Principal</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>Amount</b></font></td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td colspan="2" align=center><font size="2"><b>(000)</b></font></td>
    <td align=left><center>
        <font size="2"><b>Description</b></font>
    </center></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><center>
        <font size="2"><b>Value</b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr size="1" noshade>
    </td>
  </tr><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM INVESTMENTS&#151;152.1%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Multi-State&#151;6.9%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Baa1</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$1,500<sup> </sup></font></td>
<td><font size="2"><sup>3</sup></font></td>
<td align=left><font size="2">Charter Mac Equity Issuer Trust,
Ser. B-2, 7.20%, 10/31/52</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   1,703,445</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Virginia&#151;139.2%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">NR</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,480<sup> </sup></font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">Alexandria Redev. &amp; Hsg. Auth.,
3001 Park Ctr. Apts. Proj., Ser. A, 6.375%, 4/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/08 @ 103</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,522,299</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500<sup> </sup></font></td>
<td><font size="2"><sup>5</sup></font></td>
<td align=left><font size="2">Arlington Cnty., GO, 5.00%, 2/01/21</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">02/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,579,830</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,150</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Arlington Cnty. Ind. Dev. Auth.,
Hosp. Fac. Rev., Virginia Hosp. Ctr., Arlington Hlth. Sys. Proj., </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.25%, 7/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,232,345</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Celebrate North Cmnty. Dev. Auth.,
Spl. Assmt. Rev., Ser. B, 6.75%, 3/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">03/14 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,558,020</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Danville Ind. Dev. Auth., Hosp. Rev.,
Danville Regl. Med. Ctr. Proj., 5.25%, 10/01/28, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,657,755</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">995<sup> </sup></font></td>
<td><font size="2"><sup>4</sup></font></td>
<td align=left><font size="2">Dulles Town Ctr. Cmnty. Dev. Auth.,
Spl. Assmt. Tax, Dulles Town Ctr. Proj., 6.25%, 3/01/26</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">03/08 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,021,656</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Fairfax Cnty. Wtr. Auth., Wtr. Rev,
5.00%, 4/01/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,570,890</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Hampton, GO, 5.00%, 4/01/20</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,074,400</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Henrico Cnty. Econ. Dev. Auth., Bon
Secours Hlth. Sys., Inc. Proj., Ser. A, 5.60%, 11/15/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,577,355</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,300</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Isle Wight Cnty. Indl. Dev. Auth.,
Env. Impvt. Rev., Ser. A, 5.70%, 11/01/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,332,916</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Met. Arpts. Auth., Arpt. Sys. Rev.,
Ser. A, 5.25%, 10/01/32, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,551,060</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Norfolk Arpt. Auth., Ser. A, 5.125%,
7/01/31, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,550,205</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Pocahontas Pkwy. Assoc., Toll Road
Rev., Ser. B, Zero Coupon, 8/15/22, ACA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/08 @ 45.5</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,828,050</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,375</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Prince William Cnty., COP, 5.00%,
12/01/21</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,462,436</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,250</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Richmond Met. Auth., Expwy. Rev.,
5.25%, 7/15/22, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,439,100</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Richmond Pub. Util., 5.00%, 1/15/33,
FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,101,940</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Virginia Coll. Bldg. Auth., Edl.
Facs. Rev., Washington &amp; Lee Univ. Proj., MBIA,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.25%, 1/01/26</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">570,115</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.25%, 1/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,133,700</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Virginia Hsg. Dev. Auth., Comnwlth.
Mtg. Rev., Ser. H, 5.375%, 7/01/36, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,056,910</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Virginia Res. Auth.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infrastructure Rev., Ser. A, 5.00%,
5/01/22</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,062,320</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">635</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Infrastructure Rev., Ser. A, 5.125%,
5/01/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">670,160</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wtr. &amp; Swr. Sys. Rev., Frederick
Cnty. Sanitation Auth. Proj., 5.20%, 10/01/28</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/10 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,573,095</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">34,126,557</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Puerto Rico&#151;6.0%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,455</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Children&#146;s Trust Fund, Tobacco
Settlement Rev., 5.375%, 5/15/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,468,197</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;152.1%
(cost $34,768,599)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  37,298,199</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Other assets in excess of liabilities&#151;3.1%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">748,060</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(55.2)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(13,527,371)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  24,518,888</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
28, 2005, the Trust held 6.9% of its net assets, with a current market value of
$1,703,445, in securities restricted as to resale.</font></td>

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

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left></td><td>&nbsp;</td></tr></table>
<p align="center">
<hr size="1" noshade>
<center>
  <font size="2"><b>KEY TO ABBREVIATIONS</b></font>
  <br>
  <br>
</center>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td align=left><font size="2"><font size="2">ACA</font></font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; American Capital Access</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">FSA</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Financial Security Assurance</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">AMBAC</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; American Municipal Bond Assurance Corp.</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">GO</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; General Obligation</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">COP</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Certificate of Participation</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">MBIA</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Municipal Bond Insurance Association</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">FGIC</font></td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&#151; Financial Guaranty Insurance Co.</font></td>
    <td>&nbsp;</td>
    <td align=left></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<hr size="1" noshade>
<p>
<p>
<p><p align='center'> <font size="2">See Notes to Financial Statements.</font>
<p align='center'><font size="2">43</font>
<hr noshade size=4><page>
<p><font size="3"><b>STATEMENTS OF ASSETS AND LIABILITIES
</b><b>(unaudited)<br>
</b></font><font size="3"><b>February 28, 2005</b></font>

<hr size="1" noshade>

<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=bottom><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>California</b></font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Insured</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Insured</b></font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Municipal</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Municipal</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Municipal</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Municipal </b></font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Income Trust</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Bond Trust</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Income Trust II</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Income Trust</b></font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(BYM)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(BBK)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(BLE)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(BCK)</b></font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td COLSPAN='13' align=left><font size="3"><b><font size="3">Assets</font></b></font></td>
</tr>
<tr valign=bottom><td align=left><font size="2"><font size="2">Investments
at value<sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$621,848,473</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$251,847,228</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$547,352,965</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$123,425,971</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">Cash</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">528,574</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">462,926</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">Receivable from
investments sold</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,450</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">Variation
margin receivable</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">913,417</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">329,359</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">763,083</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">194,806</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">Interest receivable</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,545,575</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,050,911</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,242,135</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,262,247</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">Other
assets</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">85,396</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">40,053</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">66,987</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">34,806</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">629,921,435</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">255,267,551</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">555,440,620</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">125,380,756</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td COLSPAN='13' align=left><font size="3"><b><font size="3">Liabilities</font></b></font></td>
</tr>
<tr valign=bottom><td align=left><font size="2"><font size="2">Payable
to custodian</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,461,860</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,316,048</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">Payable
for investments purchased</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">Dividends payable
&#151; common shares</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,042,917</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">874,379</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,907,915</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">395,286</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">Investment
advisory fee payable</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">169,272</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">77,478</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">169,841</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">33,743</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">Payable to affiliates</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,048</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,034</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,358</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">544</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">Deferred
Trustees&#146; fees</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">33,967</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">16,298</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">31,475</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,500</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">Other accrued
expenses</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">105,577</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">115,063</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">85,824</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">43,576</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,356,781</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,549,112</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,515,461</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">478,649</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td COLSPAN='13' align=left><font size="3"><b><font size="3">Preferred
Shares at Redemption Value</font></b></font></td>
</tr>
<tr valign=bottom><td align=left><font size="2"><font size="2">$25,000
liquidation value per share, including dividends <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;payable<sup>2,3</sup></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">229,021,060</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">90,523,360</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">205,607,050</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">46,502,166</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="3"><b><font size="3">Net
Assets Applicable to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$398,543,594</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$160,195,079</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$346,318,109</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 78,399,941</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><hr noshade size=3>
    </td>
</tr>
<tr valign=bottom><td COLSPAN='13' align=left><font size="2">Composition
of Net Assets Applicable to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders:</font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Par
value</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ &nbsp;   26,149</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ &nbsp;   10,123</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ &nbsp;   22,781</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  &nbsp;   5,270</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paid-in
capital in excess of par</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">371,097,993</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">143,571,298</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">323,306,247</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">74,722,201</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undistributed
net investment income</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,321,340</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,350,299</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,768,174</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">496,570</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated
net realized loss</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(12,484,775)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(1,725,417)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(13,005,260)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(1,444,376)</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
unrealized appreciation</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">37,582,887</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">14,988,776</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">31,226,167</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,620,276</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">Net
assets applicable to common shareholders,<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;February
28, 2005</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$398,543,594</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$160,195,079</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$346,318,109</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 78,399,941</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><hr noshade size=3>
    </td>
</tr>
<tr valign=bottom><td align=left><font size="2">Net
asset value per common share<sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$15.24</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$15.82</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$15.20</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$14.88</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><HR noshade size=3></td>
</tr>


<tr valign=bottom><td align=left><font size="2"><sup>1
</sup>Investments at cost</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$585,084,604</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$237,153,699</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$516,811,159</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$118,980,297</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2"><sup>2 </sup>Preferred
shares outstanding</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,159</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,620</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,222</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,860</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2"><sup>3
</sup>Par value per share</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.001</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.001</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.001</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.001</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2"><sup>4 </sup>Common
shares outstanding</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">26,149,334</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,123,055</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">22,781,072</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,270,479</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="3"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="3"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="3"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="3"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="3"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="3"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<tr><td>&nbsp;</td></tr></table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p>
<p align='center'><font size="2">44</font>
<HR noshade size=4><PAGE><p align='center'>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=bottom>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center> </td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Florida</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>California </b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>California</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Insured</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Florida</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Maryland </b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>New Jersey</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Municipal </b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Municipal </b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Municipal</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Municipal</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Municipal </b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Municipal </b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Bond Trust</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Income Trust II</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Income Trust</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Bond Trust</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Bond Trust</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Bond Trust</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(BZA)</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(BCL)</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(BAF)</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(BIE)</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(BZM)</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(BLJ)</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='19' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='19' align=left><font size="3"><b><font size="3">Assets</font></b></font></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"><font size="2">Investments at value<sup>1</sup></font></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$83,738,124</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$187,438,330</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$203,480,032</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$81,362,682</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$49,161,341</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$55,030,353</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Cash</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">804,160</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">501,461</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">525,738</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">520,224</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">301,961</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">452,485</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Receivable from investments sold</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">20,600</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Variation margin receivable</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">117,219</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">315,278</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">275,165</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">93,877</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">57,990</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">82,486</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Interest receivable</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">922,006</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">2,564,651</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">2,947,120</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,277,016</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">617,605</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">714,917</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Other assets</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">28,651</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">25,545</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">40,883</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">27,250</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">8,197</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">9,021</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='19' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">85,610,160</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">190,865,865</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">207,268,938</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">83,281,049</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">50,147,094</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">56,289,262</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='19' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='19' align=left><font size="3"><b><font size="3">Liabilities</font></b></font></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"><font size="2">Payable to custodian</font></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Payable for investments purchased</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">2,695,581</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Dividends payable &#151; common shares</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">266,939</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">648,757</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">654,106</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">257,504</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">143,812</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">178,331</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Investment advisory fee payable</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">22,219</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">58,539</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">55,675</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">22,355</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">13,455</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">15,084</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Payable to affiliates</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,398</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,939</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">3,073</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,452</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">651</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Deferred Trustees&#146; fees</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">7,698</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">9,222</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">9,758</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">6,261</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">7,362</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">8,087</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Other accrued expenses</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">63,027</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">64,899</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">64,531</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">47,780</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">37,612</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">42,571</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='19' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">3,056,862</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">783,356</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">787,143</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">335,352</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">202,241</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">244,724</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='19' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='19' align=left><font size="3"><b><font size="3">Preferred Shares
            at Redemption Value</font></b></font></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"><font size="2">$25,000 liquidation value per
          share, including dividends <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;payable<sup>2,3</sup></font></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">29,976,304</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">71,968,192</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">76,027,694</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">29,782,665</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">18,003,156</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">20,232,370</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='19' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="3"><b><font size="3">Net Assets Applicable to <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders</font></b></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><font size="2">&nbsp;</font></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$52,576,994</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$118,114,317</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$130,454,101</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$53,163,032</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$31,941,697</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$35,812,168</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='19' ><hr noshade size=3>    </td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='19' align=left><font size="2">Composition of Net Assets Applicable
        to <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders:</font></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Par value</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ &nbsp; 3,351</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ &nbsp; 7,985</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ &nbsp; 8,721</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ &nbsp; 3,309</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ &nbsp; 2,016</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ &nbsp;2,269</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paid-in
        capital in excess of par</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">47,456,833</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">113,257,811</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">123,724,337</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">46,855,683</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">28,504,150</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">32,099,779</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undistributed
        net investment income</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,080,725</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">125,969</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">669,607</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,119,163</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">646,410</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">731,288</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated
        net realized loss</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(1,025,644)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(5,551,439)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(1,435,335)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(480,400)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(374,347)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(80,163)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized
        appreciation</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">5,061,729</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">10,273,991</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">7,486,771</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">5,665,277</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">3,163,468</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">3,058,995</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='19' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Net assets applicable to common shareholders,<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;February 28, 2005</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$52,576,994</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$118,114,317</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$130,454,101</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$53,163,032</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$31,941,697</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$35,812,168</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='19' ><hr noshade size=3>    </td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Net asset value per common share<sup>4</sup></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$15.69</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$14.79</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$14.96</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$16.06</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$15.85</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$15.78</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='19' ><HR noshade size=3></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"><sup>1 </sup>Investments at cost</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$78,781,384</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$177,446,982</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$196,239,943</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$75,781,489</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$46,049,823</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$52,045,286</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"><sup>2 </sup>Preferred shares outstanding</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,199</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">2,878</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">3,040</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,191</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">720</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">809</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"><sup>3 </sup>Par value per share</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">0.001</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">0.001</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">0.001</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">0.001</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">0.001</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">0.001</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"><sup>4 </sup>Common shares outstanding</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">3,351,150</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">7,984,696</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">8,721,409</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">3,309,483</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">2,015,589</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">2,269,366<font size="3"></font></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<p align='center'><font size="2"></font>
<p><p align='center'><font size="2">45</font>
<HR noshade size=4><PAGE><p><font size="3"><b>STATEMENTS
OF ASSETS AND LIABILITIES (</b><b>unaudited) (continued)<br>
</b></font><font size="3"><b>February 28, 2005</b></font><font size="3"></font>

<hr size="1" noshade>

<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=bottom><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>New York</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"></font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Insured</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>New York </b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>New York </b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Virginia</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Municipal</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Municipal</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Municipal</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Municipal</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Income Trust</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Bond Trust</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Income Trust II</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Bond Trust</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(BSE)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(BQH)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(BFY)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(BHV)</b></font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='12' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td COLSPAN='12' align=left><font size="3"><b><font size="3">Assets</font></b></font></td>
</tr>
<tr valign=bottom><td align=left><font size="2"><font size="2">Investments
at value<sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$151,718,265</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$66,182,058</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$117,779,857</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$37,298,199</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">Cash</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">518,817</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">525,678</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">516,117</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">329,687</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">Receivable from
investments sold</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">Variation
margin receivable</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">206,707</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">77,535</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">138,350</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">50,991</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">Interest receivable</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,637,357</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">868,396</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,394,591</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">511,986</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">Other
assets</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">35,533</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">27,299</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,103</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,847</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td COLSPAN='12' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">154,116,679</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">67,680,966</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">119,844,018</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">38,202,710</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td COLSPAN='12' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td COLSPAN='12' align=left><font size="3"><b><font size="3">Liabilities</font></b></font></td>
</tr>
<tr valign=bottom><td align=left><font size="2"><font size="2">Payable
for investments purchased</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,062,308</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">531,154</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,062,308</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">Dividends
payable &#151; common shares</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">483,649</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">208,244</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">388,840</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">110,438</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">Investment advisory
fee payable</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">41,033</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">17,971</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">36,361</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,253</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">Payable
to affiliates</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,521</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">593</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">233</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">Deferred Trustees&#146;
fees</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,755</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,604</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,551</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,213</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">Other
accrued expenses</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">40,076</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">44,182</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">55,592</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">29,314</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td COLSPAN='12' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,632,821</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">809,676</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,550,245</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">156,451</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td COLSPAN='12' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td COLSPAN='12' align=left><font size="3"><b><font size="3">Preferred
Shares at Redemption Value</font></b></font></td>
</tr>
<tr valign=bottom><td align=left><font size="2"><font size="2">$25,000
liquidation value per share, including dividends <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;payable<sup>2,3</sup></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">56,009,203</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">24,205,767</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">44,657,642</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,527,371</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td COLSPAN='12' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="3"><b><font size="3">Net
Assets Applicable to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 96,474,655</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$42,665,523</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 73,636,131</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$24,518,888</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td COLSPAN='12' ><hr noshade size=3>
    </td>
</tr>
<tr valign=bottom><td align=left><font size="2">Composition
of Net Assets Applicable to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders:</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Par
value</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  &nbsp;   6,449</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  &nbsp;  2,701</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  &nbsp;   4,938</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  &nbsp;  1,525</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paid-in
capital in excess of par</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">91,452,972</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">38,226,462</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">70,007,203</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">21,552,996</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undistributed
(distributions in excess of)<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;net
investment income</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">367,050</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">783,625</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(118,258)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">618,188</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated
net realized loss</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(1,184,220)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(548,092)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(1,746,911)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(229,077)</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
unrealized appreciation</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,832,404</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,200,827</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,489,159</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,575,256</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td COLSPAN='12' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">Net
assets applicable to common shareholders,<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;February
28, 2005</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 96,474,655</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$42,665,523</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 73,636,131</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$24,518,888</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td COLSPAN='12' ><hr noshade size=3>
    </td>
</tr>
<tr valign=bottom><td align=left><font size="2">Net
asset value per common share<sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$14.96</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$15.80</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$14.91</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$16.08</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td COLSPAN='12' ><HR noshade size=3></td>
</tr>


<tr valign=bottom><td align=left><font size="2"><sup>1
</sup>Investments at cost</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$146,071,076</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$62,050,703</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$112,414,728</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$34,768,599</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2"><sup>2
</sup>Preferred shares outstanding</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,240</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">968</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,786</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">541</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2"><sup>3 </sup>Par
value per share</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.001</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.001</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.001</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.001</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2"><sup>4
</sup>Common shares outstanding</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,448,651</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,700,991</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,937,652</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,524,794</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="3"><font size="3"></font></font><tr><td>&nbsp;</td></tr></table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p align='center'><font size="2">46</font>
<HR noshade size=4><PAGE><p>
<font size="3"><b>STATEMENTS OF OPERATIONS </b><b>(unaudited)<br>
</b></font><font size="3"><b>For the six months ended February 28, 2005</b></font><font size="3"></font>

<hr size="1" noshade>

<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=bottom><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>California</b></font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Insured</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Insured</b></font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Municipal</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Municipal</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Municipal </b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Municipal</b></font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Income Trust </b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Bond Trust </b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Income Trust II </b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Income Trust
</b></font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(BYM) </b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(BBK) </b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(BLE) </b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(BCK) </b></font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='16' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td COLSPAN='14' align=left><font size="3"><b><font size="3">Net
Investment Income</font></b></font></td>
</tr>
<tr valign=bottom><td align=left><font size="2"><font size="2">Interest
income</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$15,214,954</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 6,792,974</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$15,348,556</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">$3,030,118</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='16' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td COLSPAN='14' align=left><font size="3"><b><font size="3">Expenses</font></b></font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Investment
advisory</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,687,740</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">793,742</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,476,765</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">333,495</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer
agent</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,421</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,421</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,421</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">7,421</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Custodian</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">56,468</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">34,913</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">55,358</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">18,480</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reports
to shareholders</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">45,121</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">19,329</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">39,183</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">9,774</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trustees</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">26,969</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,498</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">22,444</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">6,516</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registration</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,306</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,114</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,199</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">10,381</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Independent
accountants</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">20,196</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">17,738</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">19,186</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">17,738</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">29,257</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,376</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">25,362</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">9,815</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">23,437</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,231</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">20,449</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">4,591</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Auction
Agent</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">289,829</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">119,002</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">265,533</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">59,749</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">34,917</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">18,550</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">30,419</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">13,728</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='16' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
expenses</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,232,661</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,050,914</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,968,319</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">491,688</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less:
fees waived by Advisor</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(613,724)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(366,342)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(402,754)</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">(121,271)</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less:
fees paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(2,970)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(3,781)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(3,592)</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">(3,819)</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='16' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
expenses</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,615,967</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">680,791</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,561,973</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">366,598</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='16' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">Net
investment income</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,598,987</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,112,183</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,786,583</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">2,663,520</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='16' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td COLSPAN='14' align=left><font size="3"><b><font size="3">Realized
and Unrealized Gain&nbsp;(Loss)</font></b></font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
realized gain (loss) on:</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,879,936</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,437,362</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,407,032</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">(432,550)</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Futures</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(720,578)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(259,203)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(601,366)</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">(153,646)</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='16' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,159,358</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,178,159</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,805,666</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">(586,196)</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='16' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
change in unrealized appreciation/depreciation on:</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,644,828</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,652,764</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">16,313,028</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">4,985,976</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Futures</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">819,018</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">295,247</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">684,361</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">174,602</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='16' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,463,846</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,948,011</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">16,997,389</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,160,578</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='16' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">Net
gain</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">16,623,204</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,126,170</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">18,803,055</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">4,574,382</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='16' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td COLSPAN='14' align=left><font size="3"><b><font size="3">Dividends
to Preferred Shareholders from:</font></b></font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
investment income</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(1,686,415)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(688,632)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(1,593,864)</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">(313,246)</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='16' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="3"><b><font size="3">Net
Increase in Net Assets Applicable to <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
Shareholders Resulting <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from Operations</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$28,535,776</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$13,549,721</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$30,995,774</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">$6,924,656</font></td>

<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='16' ><hr noshade size=3>
    </td>
</tr>
<tr><td>&nbsp;</td></tr></table>
<p align="center"><p align="center">
<font size="2">See Notes to Financial Statements</font>
<p><p align='center'><font size="2">47</font>
<HR noshade size=4><PAGE><p>
<font size="3"><b>STATEMENTS OF OPERATIONS</b><b> (unaudited)
(continued)<br>
</b></font><font size="3"><b>For the six months ended February 28, 2005</b></font>

<hr size="1" noshade>

<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center valign="bottom"><font size="2"><b>California</b></font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><font size="2"><b>Florida</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>California</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Municipal</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Insured</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Florida</b></font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Municipal</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Income</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Municipal</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Municipal</b></font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Bond Trust </b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Trust II </b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Income Trust </b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Bond Trust </b></font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(BZA) </b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(BCL) </b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(BAF) </b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(BIE) </b></font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td COLSPAN='13' align=left><font size="3"><b><font size="3">Net
Investment Income</font></b></font></td>
</tr>
<tr valign=bottom><td align=left><font size="2"><font size="2">Interest
income</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$2,179,535</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 4,957,266</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$5,014,150</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$2,176,523</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td COLSPAN='13' align=left><font size="3"><b><font size="3">Expenses</font></b></font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Investment
advisory</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">260,300</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">506,526</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">555,283</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">264,788</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer
agent</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,421</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,421</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,421</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,421</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Custodian</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">14,856</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">37,248</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">31,685</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,566</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reports
to shareholders</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,108</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,937</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">16,223</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,421</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trustees</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,335</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,964</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,050</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,335</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registration</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,952</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,132</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,383</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,017</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Independent
accountants</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">16,902</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">17,376</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">18,100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">16,898</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,388</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,883</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12,478</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,019</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,007</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,975</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,690</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,081</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Organization</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Auction
Agent</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">39,683</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">92,338</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">96,481</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">39,435</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12,544</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,321</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,998</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12,497</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
expenses</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">383,496</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">718,121</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">780,792</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">387,478</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less
fees waived by Advisor</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(120,139)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(138,143)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(201,921)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(122,210)</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less
fees paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(4,358)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(4,120)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(3,449)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(3,068)</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
expenses</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">258,999</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">575,858</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">575,422</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">262,200</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">Net
investment income</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,920,536</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,381,408</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,438,728</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,914,323</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td COLSPAN='13' align=left><font size="3"><b><font size="3">Realized
and Unrealized Gain (Loss)</font></b></font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
realized gain (loss) on:</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,119,829</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(506,727)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(357)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">39,145</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Futures</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(92,312)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(248,964)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(216,856)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(73,574)</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,027,517</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(755,691)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(217,213)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(34,429)</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
change in unrealized appreciation/depreciation on:</font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,183,236</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,617,242</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,316,748</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,553,294</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Futures</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">104,989</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">282,643</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">246,682</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">84,084</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,288,225</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,899,885</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,563,430</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,637,378</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">Net
gain</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,315,742</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,144,194</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,346,217</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,602,949</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td COLSPAN='13' align=left><font size="3"><b><font size="3">Dividends
to Preferred Shareholders from:</font></b></font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
investment income</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(202,755)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(470,976)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(498,430)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(192,030)</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=bottom><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="3"><b><font size="3">Net
Increase in Net Assets Applicable to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
Shareholders Resulting <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from Operations</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$5,033,523</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$12,054,626</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$9,286,515</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$3,325,242</font></td>
<td>&nbsp;</td>
</tr>
<tr valign=top><td COLSPAN='13' ><hr noshade size=3>
    </td>
</tr>
<tr><td>&nbsp;</td></tr></table>
<p><p align="center">
<font size="2">See Notes to Financial Statements</font>
<p><p><p align='center'><font size="2">48</font>
<HR noshade size=4><PAGE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=bottom>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>New York </b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Maryland</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>New Jersey</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Insured</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>New York </b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>New York </b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Virginia</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Municipal</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Municipal</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Municipal</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Municipal</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Municipal</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Municipal</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Bond Trust </b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Bond Trust </b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Income Trust </b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Bond Trust </b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Income Trust II </b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Bond Trust </b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(BZM) </b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(BLJ) </b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(BSE) </b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(BQH) </b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(BFY) </b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(BHV) </b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='18' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='18' align=left><font size="3"><b><font size="3">Net Investment
            Income</font></b></font></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"><font size="2">Interest income</font></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$1,254,917</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$1,507,701</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$3,683,524</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$1,747,511</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$2,964,392</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$&nbsp; 978,549</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='18' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='18' align=left><font size="3"><b><font size="3">Expenses</font></b></font></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Investment
          advisory</font></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">158,828</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">176,647</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">407,757</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">211,792</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">317,312</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">120,947</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer
        agent</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">7,421</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">7,421</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">7,421</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">7,421</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">7,421</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">7,421</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Custodian</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">13,103</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">14,634</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">14,637</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">14,165</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">21,512</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">12,702</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reports
        to shareholders</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">5,495</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">5,647</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">12,670</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">6,565</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">9,774</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">4,568</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trustees</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">6,154</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">6,154</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">6,697</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">6,335</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">6,516</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">6,154</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registration</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">595</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">695</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">10,417</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">8,952</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,289</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">438</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Independent
        accountants</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">16,732</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">16,755</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">17,738</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">16,820</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">17,072</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">11,403</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">5,776</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">5,834</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">8,848</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">5,974</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">8,432</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">5,778</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,845</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">2,041</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">5,627</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">2,449</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">4,384</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,405</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Organization</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Auction
        Agent</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">24,814</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">27,583</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">71,516</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">32,515</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">57,291</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">19,261</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">11,814</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">11,465</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">13,241</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">11,914</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">13,599</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">11,444</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='18' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
        expenses</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">252,577</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">274,876</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">576,569</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">324,902</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">464,602</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">201,521</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less
        fees waived by Advisor</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(73,305)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(81,529)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(148,275)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(97,750)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(86,540)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(55,821)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less
        fees paid indirectly</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(2,605)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(4,136)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(1,811)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(3,667)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(2,718)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(2,204)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='18' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net expenses</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">176,667</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">189,211</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">426,483</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">223,485</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">375,344</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">143,496</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='18' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Net investment income</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,078,250</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,318,490</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">3,257,041</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,524,026</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">2,589,048</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">835,053</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='18' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='18' align=left><font size="3"><b><font size="3">Realized and
            Unrealized Gain (Loss)</font></b></font></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
          realized gain (loss) on:</font></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">39,037</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">63,506</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">218,716</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">21,239</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">61,145</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">653</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Futures</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(45,508)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(64,935)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(162,818)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(60,729)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(109,026)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(40,179)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='18' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(6,471)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(1,429)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">55,898</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(39,490)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(47,881)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(39,526)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='18' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change
        in unrealized appreciation/depreciation on:</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,092,094</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">2,245,710</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">4,810,197</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,771,230</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">3,657,127</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">849,590</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Futures</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">51,950</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">73,928</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">185,215</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">69,472</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">124,030</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">45,656</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='18' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,144,044</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">2,319,638</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">4,995,412</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,840,702</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">3,781,157</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">895,246</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='18' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Net gain</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,137,573</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">2,318,209</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">5,051,310</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,801,212</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">3,733,276</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">855,720</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='18' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='18' align=left><font size="3"><b><font size="3">Dividends to
            Preferred Shareholders from:</font></b></font></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
          investment income</font></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(132,897)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(138,679)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(367,568)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(167,026)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(291,327)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(95,867)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='18' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="3"><b><font size="3">Net Increase in Net Assets
            Applicable to <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders Resulting <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from Operations</font></b></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><font size="2">&nbsp;</font></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$2,082,926</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$3,498,020</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$7,940,783</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$3,158,212</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$6,030,997</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$1,594,906 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='18' ><hr noshade size=3>    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<p align='center'>
<p><p align='center'><font size="2">49</font>
<HR noshade size=4><PAGE><p><font size="3"><b>STATEMENTS
OF CHANGES IN NET ASSETS (</b><b>unaudited)</b><br><b>For
the six months ended February 28, 2005, and for the year ended August 31, 2004</b></font>
<hr size="1" noshade>
<p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td colspan="3" align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="3" align=center>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td colspan="3" align=center><font size="2"><b>Insured
    Municipal Income Trust </b></font></td>
    <td>&nbsp;</td>
    <td colspan="3" align=center><font size="2"><b>Municipal
    Bond Trust </b></font></td>
  </tr>
  <tr valign=top>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td colspan="3" align=center><font size="2"><b>(BYM) </b></font></td>
    <td>&nbsp;</td>
    <td colspan="3" align=center><font size="2"><b>(BBK) </b></font></td>
  </tr>
  <tr valign=top>
    <td colspan="13" align=left><hr size="1" noshade>    </td>
  </tr>
  <tr valign=top>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=center><font size="2"><b>2005</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>2004</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>2005</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>2004</b></font></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='13' align=left><hr size="1" noshade>    </td>
  </tr>
  <tr valign=top>
    <td COLSPAN='13' align=left><font size="3"><b>Increase (Decrease) in Net
          Assets Applicable to <br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders</b></font> </td>
  </tr>
  <tr valign=bottom><td COLSPAN='13' align=left><font size="3"><b><font size="3">Operations</font></b></font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
investment income</font></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 13,598,987</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 27,748,279</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  6,112,183</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 12,608,952</font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gain (loss)</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,159,358</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(13,455,750)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,178,159</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(1,870,747)</font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
change in unrealized appreciation/<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;depreciation</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">11,463,846</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">37,888,538</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,948,011</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,408,728</font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
and distributions to preferred <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shareholders
from:</font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">(1,686,415)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(2,158,934)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(688,632)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(841,788)</font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
</tr>
<tr valign=bottom><td COLSPAN='26' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
increase in net assets resulting <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from
operations</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">28,535,776</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">50,022,133 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,549,721</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">19,305,145</font></td>
</tr>
<tr valign=bottom><td COLSPAN='26' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="3"><b><font size="3">Dividends
and Distributions to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders
from:</font></b></font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
investment income</font></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">(12,257,497)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(24,514,999)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(5,246,274)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(10,492,542)</font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151; </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
</tr>
<tr valign=bottom><td COLSPAN='26' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">Total
dividends and distributions</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">(12,257,497)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(24,514,999)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(5,246,274)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(10,492,542)</font></td>
</tr>
<tr valign=bottom><td COLSPAN='26' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td COLSPAN='13' align=left><font size="3"><b><font size="3">Capital
Share Transactions:</font></b></font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
proceeds from the underwriters&#146; <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;over-allotment
option exercised</font></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151; </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underwriting
discounts and unused (additional) <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;offering
costs relating to the issuance of <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;preferred
shares</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(2,051)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">128,162</font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;Reinvestment
of common dividends</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">322,573</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
</tr>
<tr valign=bottom><td COLSPAN='26' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">Net
proceeds from capital share transactions</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">320,522</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">128,162</font></td>
</tr>
<tr valign=bottom><td COLSPAN='26' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">Total
increase</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">16,278,279</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">25,827,656</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,303,447</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,940,765</font></td>
</tr>
<tr valign=bottom><td COLSPAN='26' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td COLSPAN='13' align=left><font size="3"><b><font size="3">Net
Assets Applicable to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders:</font></b></font></td>
</tr>
<tr valign=bottom><td align=left><font size="2"><font size="2">Beginning
of period</font></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">382,265,315</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">356,437,659</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">151,891,632</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">142,950,867</font></td>
</tr>
<tr valign=bottom><td COLSPAN='26' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">End
of period</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">$398,543,594</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$382,265,315 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$160,195,079</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$151,891,632 </font></td>
</tr>
<tr valign=bottom><td COLSPAN='26' ><hr noshade size=3>
    </td>
</tr>
<tr valign=bottom><td align=left><font size="2">End
of period undistributed net investment income</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">$  2,321,340</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  2,666,265</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  3,350,299</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  3,173,022</font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<tr><td>&nbsp;</td></tr></table>

<p><p>
<p>
<p align="center"><font size="2">See
Notes to Financial Statements</font>
<p><p><p align='center'><font size="2">50</font>
<HR noshade size=4><PAGE><p align='center'>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td colspan="3" align=center valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td colspan="3" align=center valign="bottom"><font size="2"><b>California Insured </b></font></td>
    <td valign="bottom">&nbsp;</td>
    <td colspan="3" align=center valign="bottom"><font size="2"><b>California Municipal </b></font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td colspan="3" align=center valign="bottom"><font size="2"><b>Municipal Income Trust II </b></font></td>
    <td valign="bottom">&nbsp;</td>
    <td colspan="3" align=center valign="bottom"><font size="2"><b>Municipal Income Trust </b></font></td>
    <td valign="bottom">&nbsp;</td>
    <td colspan="3" align=center valign="bottom"><font size="2"><b>Bond Trust </b></font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td colspan="3" align=center valign="bottom"><font size="2"><b>(BLE) </b></font></td>
    <td valign="bottom">&nbsp;</td>
    <td colspan="3" align=center valign="bottom"><font size="2"><b>(BCK) </b></font></td>
    <td valign="bottom">&nbsp;</td>
    <td colspan="3" align=center valign="bottom"><font size="2"><b>(BZA) </b></font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="18" align=left valign="bottom"><hr size="1" noshade>    </td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=center valign="bottom"><font size="2"><b>2005</b></font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=center valign="bottom"><font size="2"><b>2004</b></font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=center valign="bottom"><font size="2"><b>2005</b></font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=center valign="bottom"><font size="2"><b>2004</b></font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=center valign="bottom"><font size="2"><b>2005</b></font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=center valign="bottom"><font size="2"><b>2004</b></font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='18' align=left valign="bottom"><hr size="1" noshade>
    </td>
  </tr>
  <tr valign=top>
    <td COLSPAN='12' align=left valign="bottom"><font size="3"><b>Increase (Decrease) in Net
          Assets Applicable to <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders</b></font> </td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='12' align=left valign="bottom"><font size="3"><b><font size="3">Operations</font></b></font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
          investment income</font></font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$ 13,786,583</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$ 27,275,595</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$2,663,520</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$ 5,347,246</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$ 1,920,536</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$ 3,850,978</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized
        gain (loss)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">1,805,666</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(7,324,788)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(586,196)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(858,180)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">1,027,517</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(1,931,210)</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change
        in unrealized appreciation/<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;depreciation</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">16,997,389</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">29,272,430</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">5,160,578</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">5,570,494</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">2,288,225</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">4,972,095</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
        and distributions to preferred <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shareholders
from:</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
        investment income</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(1,593,864)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(1,987,241)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(313,246)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(397,111)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(202,755)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(241,570)</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
        realized gains</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(5,802)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(18,799)</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='31' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase
        in net assets resulting <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from
operations</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">30,995,774</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">47,235,996</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">6,924,656</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">9,656,647</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">5,033,523</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">6,631,494</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='31' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="3"><b><font size="3">Dividends and Distributions
            to <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders from:</font></b></font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
          investment income</font></font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(11,447,471)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(22,894,966)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(2,371,712)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(4,740,793)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(1,601,635)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(3,203,268)</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized
        gains</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(67,945)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(223,187)</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='31' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2">Total dividends and distributions</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(11,447,471)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(22,894,966)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(2,371,712)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(4,808,738)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(1,601,635)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(3,426,455)</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='31' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='12' align=left valign="bottom"><font size="3"><b><font size="3">Capital Share
            Transactions:</font></b></font></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
          proceeds from the underwriters&#146; <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;over-allotment
option exercised</font></font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(9,000)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underwriting
        discounts and unused (additional) <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;offering
costs relating to the issuance of <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;preferred
shares</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;Reinvestment of common dividends</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">101,150</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">23,730</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">65,451</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='31' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2">Net proceeds from capital share transactions</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">92,150</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">23,730</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">65,451</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='31' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2">Total increase</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">19,548,303</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">24,433,180</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">4,576,674</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">4,913,360</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">3,431,888</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">3,205,039</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='31' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='12' align=left valign="bottom"><font size="3"><b><font size="3">Net Assets Applicable
            to <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders:</font></b></font></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"><font size="2">Beginning of period</font></font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">326,769,806</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">302,336,626</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">73,823,267</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">68,909,907</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">49,145,106</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">45,940,067</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='31' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2">End of period</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$346,318,109</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$326,769,806 </font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$ 78,399,941</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$ 73,823,267</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$ 52,576,994</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$ 49,145,106</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='31' valign="bottom" ><hr noshade size=3>    </td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2">End of period undistributed net investment
        income</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$ 4,768,174</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$ 4,022,926</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$&nbsp; 496,570</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$&nbsp; 518,008</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$ 1,080,725</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$&nbsp; 964,579</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2"></font>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<p align='center'><font size="2"></font>
<p><p align='center'><font size="2">51</font>
<HR noshade size=4><PAGE>
<p><font size="3"><b>STATEMENTS OF CHANGES IN NET ASSETS (</b><b>unaudited</b>) <b>(continued)</b><br>
<b>For the six months ended February 28, 2005, and for the year ended August
31, 2004</b></font>
<hr size="1" noshade>
<p>
<p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td COLSPAN='3' align=left valign="bottom"><center>
        <font size="2"><b>California</b></font>
    </center></td>
    <td align=left valign="bottom"><center>
    </center></td>
    <td COLSPAN='3' align=left valign="bottom"><center>
        <font size="2"><b>Florida Insured </b></font>
    </center></td>
    <td align=left valign="bottom"><center>
    </center></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td COLSPAN='3' align=left valign="bottom"><center>
        <font size="2"><b>Municipal Income Trust II </b></font>
    </center></td>
    <td align=left valign="bottom"><center>
    </center></td>
    <td COLSPAN='3' align=left valign="bottom"><center>
        <font size="2"><b>Municipal Income Trust </b></font>
    </center></td>
    <td align=left valign="bottom"><center>
    </center></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td COLSPAN='3' align=left valign="bottom"><center>
        <font size="2"><b>(BCL) </b></font>
    </center></td>
    <td align=left valign="bottom"><center>
    </center></td>
    <td COLSPAN='3' align=left valign="bottom"><center>
        <font size="2"><b>(BAF) </b></font>
    </center></td>
    <td align=left valign="bottom"><center>
    </center></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='14' align=left valign="bottom"><hr size="1" noshade>
    </td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=center valign="bottom"><font size="2"><b>2005</b></font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=center valign="bottom"><font size="2"><b>2004</b></font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=center valign="bottom"><font size="2"><b>2005</b></font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=center valign="bottom"><font size="2"><b>2004</b></font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='14' align=left valign="bottom"><hr size="1" noshade>
    </td>
  </tr>
  <tr valign=top>
    <td COLSPAN='14' align=left valign="bottom"><font size="3"><b>Increase (Decrease)
          in Net Assets Applicable to <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders</b></font> </td>
  </tr>
  <tr valign=top>
    <td COLSPAN='14' align=left valign="bottom"><font size="3"><b><font size="3">Operations</font></b></font></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
          investment income</font></font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$4,381,408</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$8,709,910</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$4,438,728</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$8,930,146</font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
        realized gain (loss)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(755,691)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(1,707,439)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(217,213)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(1,131,981)</font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
        change in unrealized appreciation/<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;depreciation</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">8,899,885</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">9,498,500</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">5,563,430</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">6,692,461</font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
        and distributions to preferred <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shareholders
from:</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
        investment income</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(470,976)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(636,870)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(498,430)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(648,710)</font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
        realized gains</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(61,378)</font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='14' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2">Net increase in net assets
        resulting from operations</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">12,054,626</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">15,864,101</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">9,286,515</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">13,780,538</font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='14' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='14' align=left valign="bottom"><font size="3"><b><font size="3">Dividends
            and Distributions to <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders from:</font></b></font></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
          investment income</font></font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(3,892,533)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(7,782,748)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(3,924,051)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(7,846,940)</font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
        realized gains</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(657,399)</font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='14' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2">Total dividends and distributions</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(3,892,533)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(7,782,748)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(3,924,051)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(8,504,339)</font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='14' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='14' align=left valign="bottom"><font size="3"><b><font size="3">Capital
            Share Transactions:</font></b></font></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
          proceeds from the underwriters&#146; <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;over-allotment
option exercised</font></font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(4,500)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinvestment
        of common dividends</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">137,224</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">37,281</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='14' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2">Net proceeds from capital share
        transactions</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">132,724</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">37,281</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='14' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2">Total increase</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">8,162,093</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">8,214,077</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">5,399,745</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">5,276,199</font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='14' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='14' align=left valign="bottom"><font size="3"><b><font size="3">Net
            Assets Applicable to<b><font size="3"><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders:</font></b></font></b></font></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"><font size="2">Beginning of
          period</font></font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">109,952,224</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">101,738,147</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">125,054,356</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">119,778,157</font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='14' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2">End of period</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$118,114,317</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$109,952,224</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$130,454,101</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$125,054,356</font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='14' valign="bottom" ><hr noshade size=3>
    </td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2">End of period undistributed
        net investment income</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$&nbsp; 125,969</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$ &nbsp; 108,070</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$&nbsp; 669,607</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$&nbsp; 653,360</font></td>
    <td valign="bottom">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<p>
<p>
<p>
<p align="center"><font size="2">See Notes to Financial Statements.</font>
<p align="center"><font size="2"></font>
<p align='center'><font size="2">52</font>
<HR noshade size=4>
<PAGE>
<p align='center'> <font size="2"></font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom"><center>
    </center></td>
    <td COLSPAN='3' align=left valign="bottom"><center>
        <font size="2"><b>Florida</b></font>
    </center></td>
    <td align=left valign="bottom"><center>
    </center></td>
    <td COLSPAN='3' align=left valign="bottom"><center>
        <font size="2"><b>Maryland</b></font>
    </center></td>
    <td valign="bottom"><center>
    </center></td>
    <td colspan="3" valign="bottom"><center>
        <font size="2"><b>New Jersey </b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom"><center>
    </center></td>
    <td COLSPAN='3' align=left valign="bottom"><center>
        <font size="2"><b>Municipal Bond Trust </b></font>
    </center></td>
    <td align=left valign="bottom"><center>
    </center></td>
    <td COLSPAN='3' align=left valign="bottom"><center>
        <font size="2"><b>Municipal Bond Trust </b></font>
    </center></td>
    <td valign="bottom"><center>
    </center></td>
    <td colspan="3" valign="bottom"><center>
        <font size="2"><b>Municipal Bond Trust </b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom"><center>
    </center></td>
    <td COLSPAN='3' align=left valign="bottom"><center>
        <font size="2"><b>(BIE) </b></font>
    </center></td>
    <td align=left valign="bottom"><center>
    </center></td>
    <td COLSPAN='3' align=left valign="bottom"><center>
        <font size="2"><b>(BZM) </b></font>
    </center></td>
    <td valign="bottom"><center>
    </center></td>
    <td colspan="3" valign="bottom"><center>
        <font size="2"><b>(BLJ) </b></font>
    </center></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='19' align=left valign="bottom"><hr size="1" noshade>
    </td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td align=left valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=center valign="bottom"><font size="2"><b>2005</b></font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=center valign="bottom"><font size="2"><b>2004</b></font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=center valign="bottom"><font size="2"><b>2005</b></font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=center valign="bottom"><font size="2"><b>2004</b></font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=center valign="bottom"><font size="2"><b>2005</b></font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=center valign="bottom"><font size="2"><b>2004</b></font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='19' align=left valign="bottom"><hr size="1" noshade>
    </td>
  </tr>
  <tr valign=top>
    <td COLSPAN='12' align=left valign="bottom"><font size="3"><b>Increase (Decrease)
          in Net Assets Applicable to <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders</b></font> </td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='12' align=left valign="bottom"><font size="3"><b><font size="3">Operations</font></b></font></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
          investment income</font></font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$1,914,323</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$3,841,844</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$1,078,250</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$2,140,119</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$1,318,490</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$2,634,283</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
        realized gain (loss)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(34,429)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(770,346)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(6,471)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(375,659)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(1,429)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(78,747)</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
        change in unrealized appreciation/<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;depreciation</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">1,637,378</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">3,708,985</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">1,144,044</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">1,899,235</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">2,319,638</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">2,002,739</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
        and distributions to preferred <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shareholders
from:</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2"></font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
        investment income</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(192,030)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(268,790)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(132,897)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(162,726)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(138,679)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(164,119)</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
        realized gains</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(6,733)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(9,757)</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='31' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2">Net increase in net assets
        resulting from operations</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">3,325,242</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">6,504,960</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">2,082,926</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">3,500,969</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">3,498,020</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">4,384,399</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='31' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='12' align=left valign="bottom"><font size="3"><b><font size="3">Dividends
            and Distributions to <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders from:</font></b></font></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
          investment income</font></font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(1,545,026)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(3,090,049)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(862,750)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(1,724,926)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(1,069,988)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(2,139,974)</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
        realized gains</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(74,132)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(111,653)</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='31' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2">Total dividends and distributions</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(1,545,026)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(3,164,181)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(862,750)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(1,724,926)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(1,069,988)</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">(2,251,627)</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='31' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='12' align=left valign="bottom"><font size="3"><b><font size="3">Capital
            Share Transactions:</font></b></font></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
          proceeds from the underwriters&#146; <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;over-allotment
option exercised</font></font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinvestment
        of common dividends</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">6,787</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">16,038</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">25,241</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='31' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2">Net proceeds from capital share
        transactions</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">6,787</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">16,038</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&#151;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">25,241</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='31' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2">Total increase</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">1,780,216</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">3,340,779</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">1,226,963</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">1,792,081</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">2,428,032</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">2,158,013</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='31' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='12' align=left valign="bottom"><font size="3"><b><font size="3">Net
            Assets Applicable to<b><font size="3"><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders:</font></b></font></b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td COLSPAN='19' align=left valign="bottom">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2"><font size="2">Beginning of
          period</font></font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">51,382,816</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">48,042,037</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">30,714,734</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">28,922,653</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">33,384,136</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">31,226,123</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='31' valign="bottom" ><HR noshade size=1></td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2">End of period</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$ 53,163,032</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$ 51,382,816</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$ 31,941,697</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$ 30,714,734</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$ 35,812,168</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><div align="right"><font size="2"> $ 33,384,136</font></div></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td COLSPAN='29' valign="bottom" ><hr noshade size=3>
    </td>
  </tr>
  <tr valign=top>
    <td align=left valign="bottom"><font size="2">End of period undistributed
        net investment income</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">&nbsp;</font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$ 1,119,163</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$ &nbsp;941,896</font></td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2">$&nbsp; 646,410</font></td>
    <td align=right valign="bottom">&nbsp;</td>
    <td valign="bottom"><div align="right"><font size="2"> $ &nbsp;563,807</font></div></td>
    <td valign="bottom"><div align="right"></div></td>
    <td valign="bottom"><div align="right"><font size="2">$&nbsp; 731,288</font></div></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom"><div align="right"><font size="2">$ &nbsp;621,465</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<p>
<p align='center'><font size="2">53</font>
<HR noshade size=4>
<PAGE>
<p><font size="3"><b>STATEMENTS OF CHANGES IN NET ASSETS (</b><b>unaudited</b>) <b>(continued)</b><br>
  <b>For the six months ended February 28, 2005, and for the year ended August
  31, 2004</b></font>
<p>
<p>
<p>
<p>
<p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=bottom>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td colspan="3" align=center><font size="2"><b>New York Insured </b></font></td>
    <td>&nbsp;</td>
    <td colspan="3" align=center><font size="2"><b>New York </b></font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td colspan="3" align=center><font size="2"><b>Municipal Income Trust </b></font></td>
    <td>&nbsp;</td>
    <td colspan="3" align=center><font size="2"><b>Municipal Bond Trust </b></font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td colspan="3" align=center><font size="2"><b>(BSE) </b></font></td>
    <td>&nbsp;</td>
    <td colspan="3" align=center><font size="2"><b>(BQH) </b></font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='14' align=left><hr size="1" noshade>
    </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=center><font size="2"><b>2005</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>2004</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>2005</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>2004</b></font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='14' align=left><hr size="1" noshade>
    </td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="3"><b>Increase (Decrease) in Net Assets Applicable <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to Common Shareholders</b></font> </td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='14' align=left><font size="3"><b><font size="3">Operations</font></b></font></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
          investment income</font></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ 3,257,041</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ 6,554,060</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ 1,524,026</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ 3,057,394</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized
        gain (loss)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">55,898</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(1,182,079)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(39,490)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(366,905)</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change
        in unrealized appreciation/<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;depreciation</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">4,995,412</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">5,560,936</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,840,702</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">2,552,152</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
        and distributions to preferred <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shareholders
from:</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
        investment income</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(367,568)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(480,323)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(167,026)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(194,186)</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='25' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Net increase in net assets resulting <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from operations</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">7,940,783</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">10,452,594</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">3,158,212</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">5,048,455</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='25' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='14' align=left><font size="3"><b><font size="3">Dividends to
            Common Shareholders from:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
          investment income</font></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(2,899,613)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(5,792,278)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(1,249,462)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(2,498,922)</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='25' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='14' align=left><font size="3"><b><font size="3">Capital Share
            Transactions:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
          proceeds from the underwriters&#146; <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;over-allotment
option exercised</font></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinvestment
        of common dividends</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">173,546</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">168,608</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='25' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Net proceeds from capital share transactions</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">173,546</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">168,608</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='25' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Total increase</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">5,214,716</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">4,828,924</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,908,750</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">2,549,533</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='25' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='14' align=left><font size="3"><b><font size="3">Net Assets Applicable
            to <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"><font size="2">Beginning of period</font></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">91,259,939</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">86,431,015</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">40,756,773</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">38,207,240</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='25' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">End of period</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ 96,474,655</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ 91,259,939</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ 42,665,523</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ 40,756,773</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='25' ><hr noshade size=3>
    </td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">End of period undistributed (distributions
        in excess of)<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;net investment income</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$&nbsp; 367,050</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ &nbsp;377,190</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$&nbsp; 783,625</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ &nbsp;676,087</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<p>
<p>
<p>
<p align="center"><font size="2">See Notes to Financial Statements.</font>
<p align='center'><font size="2">54</font>
<HR noshade size=4>
<PAGE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=bottom>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td colspan="3" align=center><font size="2"><b>New York </b></font></td>
    <td>&nbsp;</td>
    <td colspan="3" align=center><font size="2"><b>Virginia </b></font></td>
    <td align=left>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td colspan="3" align=center><font size="2"><b>Municipal Income Trust II </b></font></td>
    <td>&nbsp;</td>
    <td colspan="3" align=center><font size="2"><b>Municipal Bond Trust </b></font></td>
    <td align=left>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td colspan="3" align=center><font size="2"><b>(BFY) </b></font></td>
    <td>&nbsp;</td>
    <td colspan="3" align=center><font size="2"><b>(BHV) </b></font></td>
    <td align=left>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='14' align=left><hr size="1" noshade>
    </td>
  </tr>
  <tr valign=bottom>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=center><font size="2"><b>2005</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>2004</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>2005</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>2004</b></font></td>
    <td align=left>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='14' align=left><hr size="1" noshade>
    </td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="3"><b>Increase (Decrease) in Net Assets Applicable <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to Common Shareholders</b></font> </td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='9' align=left><font size="3"><b><font size="3">Operations</font></b></font></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
          investment income</font></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ 2,589,048</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ 5,153,888</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$&nbsp; 835,053</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ 1,664,339</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized
        gain (loss)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(47,881)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(976,345)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(39,526)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(277,156)</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change
        in unrealized appreciation/<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;depreciation</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">3,781,157</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">4,849,996</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">895,246</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,565,169</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
        and distributions to preferred <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shareholders
from:</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
        investment income</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(291,327)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(410,703)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(95,867)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(109,756)</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='25' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Net increase in net assets resulting <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from operations</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">6,030,997</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">8,616,836</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,594,906</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">2,842,596</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='25' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='9' align=left><font size="3"><b><font size="3">Dividends to
            Common Shareholders from:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
          investment income</font></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(2,332,470)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(4,663,823)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(661,945)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(1,320,868)</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='25' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='9' align=left><font size="3"><b><font size="3">Capital Share
            Transactions:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
          proceeds from the underwriters&#146; <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;over-allotment
option exercised</font></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(2,250)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reinvestment
        of common dividends</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">34,135</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">59,303</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">61,031</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='25' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Net proceeds from capital share transactions</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">34,135</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">(2,250)</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">59,303</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">61,031</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='25' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">Total increase</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">3,732,662</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">3,950,763</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">992,264</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,582,759</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='25' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='9' align=left><font size="3"><b><font size="3">Net Assets Applicable
            to <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2"><font size="2">Beginning of period</font></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">69,903,469</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">65,952,706</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">23,526,624</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">21,943,865</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='25' ><HR noshade size=1></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">End of period</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ 73,636,131</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ 69,903,469</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ 24,518,888</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$ 23,526,624</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=bottom>
    <td COLSPAN='25' ><hr noshade size=3></td>
  </tr>
  <tr valign=bottom>
    <td align=left><font size="2">End of period undistributed (distributions
        in excess of)<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;net investment income</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><div align="right"><font size="2">$ (118,258)</font></div></td>
    <td>&nbsp;</td>
    <td><div align="right"><font size="2">$ (83,509)</font></div></td>
    <td><div align="right"></div></td>
    <td><div align="right"><font size="2">$&nbsp; 618,188</font></div></td>
    <td><div align="right"></div></td>
    <td><div align="right"><font size="2">$ &nbsp;540,947</font></div></td>
    <td>&nbsp;</td>
</tr>
</table>
<p align='center'>
<p>
<p align='center'><font size="2">55</font>
<hr noshade size=4><PAGE>
<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font>
<p><font size="3"><b>BlackRock Insured Municipal Income Trust (BYM)</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td valign="bottom" >&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"></td>
<td valign="bottom">&nbsp;</td>
<td valign="bottom"><center>
</center></td>
<td align=center valign="bottom"><center>
</center></td>
<td valign="bottom"><center>
</center></td>
<td align=center valign="bottom"><center>
</center></td>

<td align=center valign="bottom"><center>
  <b><font size="2">For the period</font></b>
</center></td>
<td>&nbsp;</td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td valign="bottom"><center>
  <b><font size="2">Six Months Ended</font></b>
</center></td>
<td align=center valign="bottom"><center>
</center></td>
<td valign="bottom"><center>
</center></td>
<td align=center valign="bottom"><center>
</center></td>

<td align=center valign="bottom"><center>
  <b><font size="2">October 31, 2002<sup>1</sup></font></b>
</center></td>
<td>&nbsp;</td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><center>
  <b><font size="2">February 28, 2005</font></b>
</center></td>
<td valign="bottom"><center>
</center></td>
<td align=center valign="bottom"><center>
  <b><font size="2">Year Ended</font></b>
</center></td>
<td align=center valign="bottom"><center>
</center></td>

<td align=center valign="bottom"><center>
  <b><font size="2">through</font></b>
</center></td>
<td>&nbsp;</td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><center>
  <b><font size="2">(unaudited)</font></b>
</center></td>
<td valign="bottom"><center>
</center></td>
<td align=center valign="bottom"><center>
  <b><font size="2">August 31, 2004</font></b>
</center></td>
<td valign="bottom"><center>
</center></td>
<td valign="bottom"><center>
  <b><font size="2">August 31, 2003</font></b>
</center></td>
<td>&nbsp;</td>
</tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='10' align=left valign="bottom"><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, beginning of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.62</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.64</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.33<font size="1">)</font><font size="2"><sup>2</sup></font></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='10' align=left valign="bottom"><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.52</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.06</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.83</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.63</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.94</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.62)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
to preferred shareholders from net investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.06)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.08)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.07)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
increase from investment operations</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.09</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.92</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.14</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Dividends
to common shareholders from net investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.47)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.94)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.70)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='10' align=left valign="bottom"><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.03)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.10)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Total
capital charges</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.13)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.24</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.62</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.64</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2">Market
price, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.60</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.97</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.51</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2"><b>TOTAL
INVESTMENT RETURN<sup>3</sup></b></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.96%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">10.57%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(5.39)%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='10' align=left valign="bottom"><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>
</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>COMMON SHAREHOLDERS:<sup>4</sup></b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.84%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.84%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.77%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses after
fees waived and before fees paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.84%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.84%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.79%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses before fees waived and
paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.15%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.16%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.10%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment
income before preferred share dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.03%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.30%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.95%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred share dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.87%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.57%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.55%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment
income available to common shareholders</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.16%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.73%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.40%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2"><b>SUPPLEMENTAL DATA:</b></font></td>

<td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Average
net assets of common shareholders (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$389,835</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$380,007</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$372,269</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Portfolio turnover</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">25%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">57%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">46%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net assets
of common shareholders, end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$398,544</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$382,265</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$356,438</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred shares value outstanding,
end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$228,975</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$228,975</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$228,975</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Asset coverage
per preferred share, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 68,519</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 66,739</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 63,919</font></td>

<td>&nbsp;</td></tr>
</table>

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><hr align="left" width="140" size="1">
      </td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

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

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left>&nbsp;</td>
<td>&nbsp;</td></tr></table>
<p><font size="2">The information in the above Financial Highlights represents
    the operating performance for a common share outstanding, total investment
    returns, ratios to average net assets and other supplemental data for each
    period indicated. This information has been determined based upon financial
    information provided in the financial statements and market price data for
    the Trust&#146;s common shares.</font>
<p>
<p align="center"><font size="2">See Notes to Financial Statements.</font>
<p>
<p>
<p align='center'><font size="2">56</font>
<p>
<p>
<p>
<hr noshade size=4><PAGE>
<p>
<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font>
<p><b><font size="3">BlackRock Municipal Bond Trust (BBK)</font>
</b>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td valign="bottom" >&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>

<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><center>
  <b><font size="2">For the period</font></b>
</center></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">Six Months Ended</font></b></td>
<td valign="bottom">&nbsp;</td>
<td colspan="3" align=center valign="bottom"><b><font size="2">Year Ended August 31,</font></b></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><center>
  <b><font size="2">April 30, 2002<sup>1</sup></font></b>
</center></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">February 28, 2005</font></b></td>
<td valign="bottom">&nbsp;</td>
<td colspan="3" align=center valign="bottom">  <hr size="1" noshade>  </td>
<td align=center valign="bottom">&nbsp;</td>

<td valign="bottom"><center>
  <b><font size="2"><font size="2">through</font></font></b>
</center></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">(unaudited)</font></b></td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom"><center>
  <b><font size="2">2004</font></b>
</center></td>
<td valign="bottom"><center>
</center></td>
<td align=center valign="bottom"><center>
  <b><font size="2">2003</font></b>
</center></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><center>
  <b><font size="2">August 31, 2002</font></b>
</center></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='16' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, beginning of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.00</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.12</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.76</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.33<sup>2</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.61</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.25</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.28</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.31</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.80</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.74</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.74)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.52</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
and distributions to preferred shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.07)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.08)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.10)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.03)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.01)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
increase from investment operations</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.34</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.91</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.43</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.80</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Dividends
and distributions to common shareholders: <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.52)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(1.04)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(1.02)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.25)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.05)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Total
dividends and distributions</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.52)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(1.04)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(1.07)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.25)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.03)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.01</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.09)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Total
capital charges</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.01</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.12)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.82</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.00</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.12</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.76</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2">Market
price, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.98</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.61</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.66</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.90</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2"><b>TOTAL
INVESTMENT RETURN<sup>3</sup></b></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.13%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">14.87%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(1.20)%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.07%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>
</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>COMMON SHAREHOLDERS:<sup>4</sup></b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.88%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.89%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.91%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.90%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses after fees waived and
before fees paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.89%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.90%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.92%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.91%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses before
fees waived and paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.36%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.37%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.41%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.32%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment income before
preferred share dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.91%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">8.28%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">8.66%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.35%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred share
dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.89%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.55%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.67%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.53%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment income available
to common shareholders</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.02%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.73%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.99%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">5.82%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Average
net assets of common shareholders (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$155,752</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$152,200</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$148,670</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$144,196</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Portfolio turnover</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">40%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">65%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">21%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">22%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net assets of common shareholders,
end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$160,195</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$151,892</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$142,951</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$149,253</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred shares
value outstanding, end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 90,500</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 90,500</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 90,500</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 90,500</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Asset coverage per preferred
share, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 69,259</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 66,963</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 64,491</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 66,233</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><hr align="left" width="140" size="1">
      </td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

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

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

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

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

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

<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><center>
  <b><font size="2">For the period</font>
  </b>
</center></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">Six Months Ended</font></b></td>
<td valign="bottom">&nbsp;</td>
<td colspan="3" align=center valign="bottom"><b><font size="2">Year Ended August 31,</font></b></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><center>
  <b><font size="2">July 30, 2002<sup>1</sup></font>
  </b>
</center></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">February 28, 2005</font></b></td>
<td valign="bottom">&nbsp;</td>
<td colspan="3" align=center valign="bottom"><hr size="1" noshade>  </td>
<td align=center valign="bottom">&nbsp;</td>

<td valign="bottom"><center>
  <b><font size="2"><font size="2">through</font></font>
  </b>
</center></td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">(unaudited)</font></b></td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom"><center>
  <b><font size="2">2004</font>
  </b>
</center></td>
<td valign="bottom"><center>
  </center></td>
<td align=center valign="bottom"><center>
  <b><font size="2">2003</font>
  </b>
</center></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><center>
  <b><font size="2">August 31, 2002</font>
  </b>
</center></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='16' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>

<td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, beginning of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.34</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.28</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.40</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.33<sup>2</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.60</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.20</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.14</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.03</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.83</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.95</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(1.06)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.07</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
to preferred shareholders from net investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.07)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.09)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.10)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
increase (decrease) from investment operations</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.36</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">2.06</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.02)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.10</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Dividends
to common shareholders from net investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.50)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(1.00)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(1.00)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.03)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.10)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Total
capital charges</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.10)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.03)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.20</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.34</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.28</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.40</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2">Market
price, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.54</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.92</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.11</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.00</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2"><b>TOTAL
INVESTMENT RETURN<sup>3</sup></b></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">8.14%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">14.15%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(6.00)%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.00%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>
</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>COMMON SHAREHOLDERS:<sup>4</sup></b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.94%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.95%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.92%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.65%<sup>5,6</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses after
fees waived and before fees paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.94%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.95%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.93%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.65%<sup>5,6</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses before fees waived and
paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.18%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.20%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.17%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.80%<sup>5,6</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment
income before preferred share dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">8.28%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">8.37%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">8.15%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">2.82%<sup>5,6</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred share dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.96%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.61%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.69%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;%<sup>5,6</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment
income available to common shareholders</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.32%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.76%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.46%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">2.82%<sup>5,6</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Average
net assets of common shareholders (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$335,906</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$325,680</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$318,014</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$307,165</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Portfolio turnover</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">20%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">64%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">118%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net assets
of common shareholders, end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$346,318</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$326,770</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$302,337</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$323,483</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred shares value outstanding,
end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$206,550</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$205,550</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$205,550</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ &nbsp;   &#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Asset coverage
per preferred share, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 67,128</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 64,747</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 61,774</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$&nbsp;    &#151;</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

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

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

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

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

<td>&nbsp;</td></tr>
</table>

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

<p><font size="3"><b>FINANCIAL HIGHLIGHTS </b></font>
<p><b><font size="3">BlackRock California Insured Municipal Income Trust (BCK)</font>
</b>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td valign="bottom" >&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"></td>
<td valign="bottom">&nbsp;</td>
<td valign="bottom"><center>
  </center></td>
<td align=center valign="bottom"><center>

</center></td>
<td valign="bottom"><center>
  </center></td>
<td align=center valign="bottom"><center>
  </center></td>

<td align=center valign="bottom"><center>
  <b><font size="2">For the period</font>
  </b>
</center></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><center>
  <b><font size="2">Six Months Ended</font>
  </b>
</center></td>
<td align=center valign="bottom"><center>

</center></td>
<td valign="bottom"><center>
  </center></td>
<td align=center valign="bottom"><center>
  </center></td>

<td align=center valign="bottom"><center>
  <b><font size="2">October 31, 2002<sup>1</sup></font>
  </b>
</center></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><center>
  <b><font size="2">February 28, 2005</font>
  </b>
</center></td>
<td valign="bottom"><center>
  </center></td>
<td align=center valign="bottom"><center>
  <b><font size="2">Year Ended</font>
  </b>
</center></td>
<td align=center valign="bottom"><center>
  </center></td>

<td align=center valign="bottom"><center>
  <b><font size="2">through</font>
  </b>
</center></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><center>
  <b><font size="2">(unaudited)</font>
  </b>
</center></td>
<td valign="bottom"><center>
  </center></td>
<td align=center valign="bottom"><center>
  <b><font size="2">August 31, 2004</font>
  </b>
</center></td>
<td valign="bottom"><center>
  </center></td><td valign="bottom"><center>
    <b><font size="2">August 31, 2003</font>
    </b>
  </center></td>
</tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>

<td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, beginning of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.01</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.09</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.33<font size="1"> </font><font size="2"><sup>2</sup></font></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='10' align=left valign="bottom"><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.51</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.02</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.79</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.87</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.89</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(1.15)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
to preferred shareholders from net investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.06)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.08)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.06)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
increase (decrease) from investment operations</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.32</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.83</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.42)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Dividends
to common shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.45)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.90)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.67)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.01)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Total
dividends and distributions</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.45)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.91)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.67)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='10' align=left valign="bottom"><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.03)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.12)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Total
capital charges</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.15)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.88</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.01</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.09</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2">Market
price, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.13</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.00</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.01</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2"><b>TOTAL
INVESTMENT RETURN<sup>3</sup></b></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">4.23%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">14.97%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(8.98)%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='10' align=left valign="bottom"><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>
</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>COMMON SHAREHOLDERS:<sup>4</sup></b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.98%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.99%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.92%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses after
fees waived and before fees paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.99%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.99%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.96%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses before fees waived and
paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.31%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.32%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.27%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment
income before preferred share dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.09%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.26%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.69%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred share dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.83%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.54%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.50%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment
income available to common shareholders</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.26%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.72%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.19%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' align=left valign="bottom"><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Average
net assets of common shareholders (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 75,776</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 73,679  </font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 74,302</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Portfolio turnover</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">3%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">4%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">41%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net assets
of common shareholders, end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 78,400</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 73,823</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 68,910</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred shares value outstanding,
end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 46,500</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 46,500</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 46,500</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Asset coverage
per preferred share, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 67,152</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 64,691</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 62,052</font></td>

<td>&nbsp;</td></tr>
</table>

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

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

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

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

<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font>
<p><b><font size="3">BlackRock California Municipal Bond Trust (BZA)</font>
</b>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td valign="bottom" >&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>

<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><center>
  <b><font size="2">For the period</font></b>
</center></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">Six Months Ended</font></b></td>
<td valign="bottom">&nbsp;</td>
<td colspan="3" align=center valign="bottom"><b><font size="2">Year Ended August 31,</font></b></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><center>
  <b><font size="2">April 30, 2002<sup>1</sup></font></b>
</center></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">February 28, 2005</font></b></td>
<td valign="bottom">&nbsp;</td>
<td colspan="3" align=center valign="bottom"><hr size="1" noshade>  <font size="2">&nbsp;</font></td>
<td align=center valign="bottom"><font size="2"><font size="2"></font></font></td>

<td valign="bottom"><center>
  <b><font size="2"><font size="2">through</font></font></b>
</center></td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">(unaudited)</font></b></td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom"><center>
  <b><font size="2">2004</font>
  </b>
</center></td>
<td valign="bottom"><center>
  </center></td>
<td align=center valign="bottom"><center>
  <b><font size="2">2003</font>
  </b>
</center></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><center>
  <b><font size="2">August 31, 2002</font></b>
</center></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='16' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, beginning of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.67</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.71</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.87</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.33<sup>2</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.57</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.15</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.18</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.28</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.99</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.92</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(1.21)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.63</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
and distributions to preferred shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.06)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.07)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.09)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.02)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.01)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.01)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
increase (decrease) from investment operations</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.50</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.99</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.13)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.89</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Dividends
and distributions to common shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.48)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.96)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.94)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.23)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.07)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.08)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Total
dividends and distributions</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.48)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(1.03)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(1.02)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.23)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.03)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.01)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.09)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Total
capital charges</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.01)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.12)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.69</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.67</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.71</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.87</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2">Market
price, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.55</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.90</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.15</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.58</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2"><b>TOTAL
INVESTMENT RETURN<sup>3</sup></b></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">8.20%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">13.80%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(2.92)%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(1.23)%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>
</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>COMMON SHAREHOLDERS:<sup>4</sup></b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.03%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.06%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.06%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.12%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses after fees waived and
before fees paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.05%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.07%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.06%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.12%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses before
fees waived and paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.52%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.55%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.54%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.53%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment income before
preferred share dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.63%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.87%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.99%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">5.75%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred share
dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.81%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.49%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.58%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.49%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment income available
to common shareholders</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.82%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.38%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.41%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">5.26%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Average
net assets of common shareholders (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 50,781</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 48,928</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 49,107</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 47,390</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Portfolio turnover</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">24%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">22%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">18%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net assets of common shareholders,
end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 52,577</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 49,145</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  45,940</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 49,834</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred shares
value outstanding, end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 29,975</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 29,975</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 29,975</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 29,975</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Asset coverage per preferred
share, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 68,852</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 65,990</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 63,318</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 66,569</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><hr align="left" width="140" size="1">
      </td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

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

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

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

<td>&nbsp;</td></tr>
</table>
<p><font size="2">The information in the above Financial Highlights represents
    the operating performance for a common share outstanding, total investment
    returns, ratios to average net assets and other supplemental data for each
    period indicated. This information has been determined based upon financial
    information provided in the financial statements and market price data for
the Trust&#146;s common shares.</font></p>
<p>
<p align="center"><font size="2">See Notes to Financial Statements.</font>
<p>
<p>
<p align='center'><font size="2">60</font>
<hr noshade size=4><PAGE>
<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font>
<p><b><font size="3">BlackRock California Municipal Income Trust II (BCL)</font>
</b>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>

<td>&nbsp;</td>
<td align=center><b><font size="2">For the period</font></b></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><b><font size="2">Six Months Ended</font></b></td>
<td>&nbsp;</td>
<td colspan="3" align=center><b><font size="2">Year Ended August 31,</font></b></td>
<td>&nbsp;</td>
<td align=center><b><font size="2">July 30, 2002<sup>1</sup></font></b></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><b><font size="2">February 28, 2005</font></b></td>
<td>&nbsp;</td>
<td colspan="3" align=center><hr size="1" noshade>  </td>
<td align=center>&nbsp;</td>

<td><center>
  <b><font size="2"><font size="2">through</font></font>
  </b>
</center></td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><b><font size="2">(unaudited)</font></b></td>
<td align=center>&nbsp;</td>
<td><center>
  <b><font size="2">2004</font>
  </b>
</center></td>
<td>&nbsp;</td>
<td align=center><b><font size="2">2003</font></b></td>
<td>&nbsp;</td>
<td align=center><b><font size="2">August 31, 2002</font></b></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='16' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>

<td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, beginning of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.77</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  12.76</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.42</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.33<sup>2</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.55</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.09</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.02</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.02</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.02</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.97</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(1.51)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.10</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
to preferred shareholders from net investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.06)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.08)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.09)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
increase (decrease) from investment operations</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.51</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.98</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.58)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.12</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Dividends
to common shareholders from net investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.49)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.97)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.97)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.03)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.11)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Total
capital charges</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.11)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.03)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.79</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.77</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  12.76</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.42</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2">Market
price, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.38</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.71</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.01</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.01</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2"><b>TOTAL
INVESTMENT RETURN<sup>3</sup></b></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">8.54%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">13.21%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(6.94)%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.07%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>
</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>COMMON SHAREHOLDERS:<sup>4</sup></b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.02%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.05%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.97%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.05%<sup>5,6</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses after
fees waived and before fees paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.03%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.05%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.99%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.05%<sup>5,6</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses before fees waived and
paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.27%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.30%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.23%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.20%<sup>5,6</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment
income before preferred share dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.77%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.97%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.38%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.35%<sup>5,6</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred share dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.83%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.58%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.63%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;%<sup>5,6</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment
income available to common shareholders</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.94%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.39%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.75%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.35%<sup>5,6</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Average
net assets of common shareholders (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$113,768</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$109,252</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$110,286</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$105,895</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Portfolio turnover</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">19%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">85%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net assets
of common shareholders, end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$118,114</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$109,952</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$101,738</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$112,576</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred shares value outstanding,
end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 71,950</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 71,950</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 71,950</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$    &nbsp;&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Asset coverage
per preferred share, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 66,047</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 63,209</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 60,353</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$    &nbsp;&#151;</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><hr align="left" width="140" size="1">
      </td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market <br>price on the last day of each year reported.
Dividends and distributions, if any, are assumed for purposes of this calculation
to be reinvested at prices obtained under the Trust&#146;s dividend reinvestment
plan. Total investment returns do not reflect brokerage commissions. Total investment
returns for less than a full year are not annualized. Past performance is not a
guarantee of future results.</font></td>

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

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

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

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

<td>&nbsp;</td></tr>
</table>

<p><font size="2">The information in the above Financial Highlights represents
    the operating performance for a common share outstanding, total investment
    returns, ratios to average net assets and other supplemental data for each
    period indicated. This information has been determined based upon financial
    information provided in the financial statements and market price data for
the Trust&#146;s common shares.</font></p>
<p align="center"><font size="2">See Notes to Financial Statements.</font>
<p>
<p>
<p align='center'><font size="2">61</font>
<hr noshade size=4><PAGE>

<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font>
<p><b><font size="3">BlackRock Florida Insured Municipal Income Trust (BAF)</font>
</b>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>

<td align=center><b><font size="2">For the period</font></b></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><b><font size="2">Six Months Ended</font></b></td>
<td align=center>&nbsp;</td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>

<td align=center><b><font size="2">October 31, 2002<sup>1</sup></font></b></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><b><font size="2">February 28, 2005</font></b></td>
<td>&nbsp;</td>
<td align=center><b><font size="2">Year Ended</font></b></td>
<td>&nbsp;</td>
<td align=center><b><font size="2">through</font></b></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><b><font size="2">(unaudited)</font></b></td>
<td>&nbsp;</td>
<td align=center><b><font size="2">August 31, 2004</font></b></td>
<td>&nbsp;</td>
<td align=center><b><font size="2">August 31, 2003</font></b></td>
</tr>
<tr valign=top><td COLSPAN='10' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Net
asset value, beginning of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  13.74</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.33<sup>2</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='10' align=left><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.51</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.02</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.75</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.62</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.64</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.47)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
and distributions to preferred shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.06)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.07)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.06)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.01)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Net
increase from investment operations</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(1.07)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.58</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.22</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Dividends
and distributions to common shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.45)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.90)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.67)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.08)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Total
dividends and distributions</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.45)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.98)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.67)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='10' align=left><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.03)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.11)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Total
capital charges</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.14)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Net
asset value, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.96</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  13.74</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left><font size="2">Market
price, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.96</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.14</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  13.20</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left><font size="2"><b>TOTAL
INVESTMENT RETURN<sup>3</sup></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9.13%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">14.82%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(7.78)%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='10' align=left><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>
</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>COMMON SHAREHOLDERS:<sup>4</sup></b></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.91%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.91%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.83%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Expenses after fees waived and
before fees paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.91%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.93%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.87%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Expenses before
fees waived and paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.23%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.25%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.17%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Net investment income before
preferred share dividends</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7.02%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7.13%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6.39%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Preferred share
dividends</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.79%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.52%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.54%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Net investment income available
to common shareholders</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6.23%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6.61%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5.85%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' align=left><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Average
net assets of common shareholders (000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$127,594</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$125,315</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$124,543</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Portfolio turnover</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">50%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Net assets of common shareholders,
end of period (000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$130,454</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$125,054</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$119,778</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Preferred shares
value outstanding, end of period (000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 76,000</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 76,000</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 76,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Asset coverage per preferred
share, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 67,922</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 66,137</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 64,404</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><hr align="left" width="140" size="1">
      </td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

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

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

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

<td>&nbsp;</td></tr>
</table>
<p><font size="2">The information in the above Financial Highlights represents
    the operating performance for a common share outstanding, total investment
    returns, ratios to average net assets and other supplemental data for each
    period indicated. This information has been determined based upon financial
    information provided in the financial statements and market price data for
the Trust&#146;s common shares.</font></p>
<p align="center"><font size="2">See Notes to Financial Statements.</font>
<p>
<p>
<p align='center'><font size="2">62</font>
<hr noshade size=4><PAGE>
<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font>
<p><b><font size="3">BlackRock Florida Municipal Bond Trust (BIE)</font>
</b>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td valign="bottom" >&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>

<td align=center valign="bottom"><b><font size="2">For the period</font></b></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">Six Months Ended</font></b></td>
<td valign="bottom">&nbsp;</td>
<td colspan="3" align=center valign="bottom"><b><font size="2">Year Ended August 31,</font></b></td>
<td align=center valign="bottom">&nbsp;</td>

<td align=center valign="bottom"><b><font size="2">April 30, 2002<sup>1</sup></font></b></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">February 28, 2005</font></b></td>
<td valign="bottom">&nbsp;</td>
<td colspan="3" align=center valign="bottom"><hr size="1" noshade>  </td>
<td align=center valign="bottom">&nbsp;</td>

<td align=center valign="bottom"><b><font size="2"><font size="2">through</font></font></b></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">(unaudited)</font></b></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">2004</font></b></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">2003</font></b></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">August 31, 2002</font></b></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, beginning of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.53</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.52</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.90</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.33<sup>2</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.58</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.16</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.14</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.26</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.48</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.88</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.43)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.68</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
and distributions to preferred shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.06)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.08)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.09)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.02)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.01)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
increase from investment operations</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.00</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.96</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.61</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.92</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Dividends
and distributions to common shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.47)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.93)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.92)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.23)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.02)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.06)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Total
dividends and distributions</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.47)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.95)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.98)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.23)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.03)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.01)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.09)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Total
capital charges</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.01)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.12)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  16.06</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.53</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.52</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.90</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2">Market
price, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.94</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.17</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.55</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.92</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2"><b>TOTAL
INVESTMENT RETURN<sup>3</sup></b></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">8.75%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">11.82%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(2.90)%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.03%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>
</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>COMMON SHAREHOLDERS:<sup>4</sup></b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.01%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.02%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.05%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.12%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses after fees waived and
before fees paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.02%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.03%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.05%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.12%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses before
fees waived and paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.49%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.50%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.53%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.54%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment income before
preferred share dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.37%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.62%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.54%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">5.36%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred share
dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.74%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.53%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.59%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.49%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment income available
to common shareholders</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.63%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.09%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.95%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">4.87%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Average
net assets of common shareholders (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 52,373</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 50,422</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 49,915</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 46,792</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Portfolio turnover</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">10%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">19%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net assets of common shareholders,
end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 53,163</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 51,383</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 48,042</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 49,284</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred shares
value outstanding, end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 29,775</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 29,775</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 29,775</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 29,775</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Asset coverage per preferred
share, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 69,644</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 68,147</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 65,340</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 66,383</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"><sup></sup></font><sup><font size="2">1</font></sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

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

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

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

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

<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font>
<p><b><font size="3">BlackRock Maryland Municipal Bond Trust (BZM)</font>
</b>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td valign="bottom" >&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>

<td align=center valign="bottom"><b><font size="2">For the period</font></b></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">Six Months Ended</font></b></td>
<td valign="bottom">&nbsp;</td>
<td colspan="3" align=center valign="bottom"><b><font size="2">Year Ended August 31,</font></b></td>
<td align=center valign="bottom">&nbsp;</td>

<td align=center valign="bottom"><b><font size="2">April 30, 2002<sup>1</sup></font></b></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">February 28, 2005</font></b></td>
<td valign="bottom">&nbsp;</td>
<td colspan="3" align=center valign="bottom"><hr size="1" noshade>  </td>
<td align=center valign="bottom">&nbsp;</td>

<td align=center valign="bottom"><b><font size="2"><font size="2">through</font></font></b></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><center>
  <b><font size="2">(unaudited)</font>
  </b>
</center></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">2004</font></b></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">2003</font></b></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">August 31, 2002</font></b></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, beginning of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.24</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.36</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.76</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.33<sup>2</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.53</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.06</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.07</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.25</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.58</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.76</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.45)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.53</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
and distributions to preferred shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.07)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.08)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.10)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.03)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.01)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
increase from investment operations</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.04</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.74</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.51</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.75</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Dividends
and distributions to common shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.43)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.86)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.84)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.21)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.04)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Total
dividends and distributions</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.43)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.86)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.88)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.21)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.02)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.03)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.09)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Total
capital charges</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.03)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.11)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.85</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.24</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.36</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.76</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2">Market
price, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.31</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.99</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.90</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$   14.95</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2"><b>TOTAL
INVESTMENT RETURN<sup>3</sup></b></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">5.06%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">14.31%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(1.32)%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.10%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>
</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>COMMON SHAREHOLDERS:<sup>4</sup></b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.14%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.18%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.15%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.12%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses after fees waived and
before fees paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.16%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.19%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.15%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.12%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses before
fees waived and paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.63%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.67%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.63%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.54%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment income before
preferred share dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.95%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.05%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.18%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">5.30%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred share
dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.86%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.54%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.64%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.54%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment income available
to common shareholders</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.09%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.51%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.54%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">4.76%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>

<td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Average
net assets of common shareholders (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 31,275</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 30,350</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 30,069</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 28,153</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Portfolio turnover</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">12%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">14%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net assets of common shareholders,
end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 31,942</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 30,715</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 28,923</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 29,705</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred shares
value outstanding, end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 18,000</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 18,000</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 18,000</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 18,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Asset coverage per preferred
share, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 69,368</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 67,662</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 65,172</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 66,259</font></td>

<td>&nbsp;</td></tr>
<tr><td>&nbsp;</td></tr></table>

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

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

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

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

<p><font size="2">The information in the above Financial Highlights represents
    the operating performance for a common share outstanding, total investment
    returns, ratios to average net assets and other supplemental data for each
    period indicated. This information has been determined based upon financial
    information provided in the financial statements and market price data for
the Trust&#146;s common shares.</font></p>
<p align="center"><font size="2">See Notes to Financial Statements.</font>
<p>
<p>
<p align='center'><font size="2">64</font>
<hr noshade size=4><PAGE>

<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font>
<p><b><font size="3">BlackRock New Jersey Municipal Bond Trust (BLJ)</font>
</b>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td valign="bottom" >&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>

<td align=center valign="bottom"><b><font size="2">For the period</font></b></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">Six Months Ended</font></b></td>
<td valign="bottom">&nbsp;</td>
<td colspan="3" align=center valign="bottom"><b><font size="2">Year Ended August 31,</font></b></td>
<td align=center valign="bottom">&nbsp;</td>

<td align=center valign="bottom"><b><font size="2">April 30, 2002<sup>1</sup></font></b></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">February 28, 2005</font></b></td>
<td valign="bottom">&nbsp;</td>
<td colspan="3" align=center valign="bottom"><hr size="1" noshade>  </td>
<td align=center valign="bottom">&nbsp;</td>

<td align=center valign="bottom"><b><font size="2"><font size="2">through</font></font></b></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><center>
  <b><font size="2">(unaudited)</font>
  </b>
</center></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">2004</font></b></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">2003</font></b></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">August 31, 2002</font></b></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, beginning of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.71</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.77</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.58</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.33<sup>2</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.58</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.16</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.15</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.25</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.02</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.84</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.85)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.37</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
and distributions to preferred shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.06)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.07)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.09)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.02)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.01)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
increase from investment operations</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.54</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.93</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.20</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.60</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Dividends
and distributions to common shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.47)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.94)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.93)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.23)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.05)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.06)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Total
dividends and distributions</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.47)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.99)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.99)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.23)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.03)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.02)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.09)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Total
capital charges</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.02)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.12)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.78</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.71</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.77</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.58</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2">Market
price, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.28</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.91</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.64</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.65</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2"><b>TOTAL
INVESTMENT RETURN<sup>3</sup></b></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">13.36%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">9.32%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.10)%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.75)%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>
</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>COMMON SHAREHOLDERS:<sup>4</sup></b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.10%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.14%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.14%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.15%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses after fees waived and
before fees paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.13%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.15%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.14%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.15%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses before
fees waived and paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.60%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.63%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.62%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.57%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment income before
preferred share dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.69%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.93%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.94%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">5.29%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred share
dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.81%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.49%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.60%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.45%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment income available
to common shareholders</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.88%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.44%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.34%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">4.84%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>

<td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Average
net assets of common shareholders (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 34,578</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 33,214</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 32,652</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 31,611</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Portfolio turnover</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">4%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">20%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">20%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">17%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net assets of common shareholders,
end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 35,812</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 33,384</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 31,226</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 32,981</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred shares
value outstanding, end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 20,225</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 20,225</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 20,225</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 20,225</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Asset coverage per preferred
share, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 69,276</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 66,266</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 63,602</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 65,771</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

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

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

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

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

<p align="center"><font size="2">See Notes to Financial Statements.</font>
<p>
<p>
<p align='center'><font size="2">65</font>
<hr noshade size=4><PAGE>

<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font>
<p><b><font size="3">BlackRock New York Insured Municipal Income Trust (BSE)</font>
</b>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td valign="bottom" >&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"></td>
<td valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>

<td align=center valign="bottom"><b><font size="2">For the period</font></b></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">Six Months Ended</font></b></td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>

<td align=center valign="bottom"><b><font size="2">October 31, 2002<sup>1</sup></font></b></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">February 28, 2005</font></b></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">Year Ended</font></b></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">through</font></b></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">(unaudited)</font></b></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">August 31, 2004</font></b></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">August 31, 2003</font></b></td>
</tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='10' align=left valign="bottom"><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, beginning of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.18</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.45</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.33<sup>2</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='10' align=left valign="bottom"><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.51</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.01</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.75</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.78</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.69</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.75)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
to preferred shareholders from net investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.06)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.07)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.07)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
increase (decrease) from investment operations</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.23</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.63</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.07)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Dividends
to common shareholders from net investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.45)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.90)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.67)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Capital
charges with respect to issuance of:</font></td>

<td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.03)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.11)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Total
capital charges</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.14)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.96</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.18</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.45</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2">Market
price, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.32</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.08</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.28</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2"><b>TOTAL
INVESTMENT RETURN<sup>3</sup></b></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">4.95%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">13.04%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(7.13)%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='10' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='10' align=left valign="bottom"><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>
</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>COMMON SHAREHOLDERS:<sup>4</sup></b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.92%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.93%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.87%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses after
fees waived and before fees paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.92%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.95%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.91%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses before fees waived and
paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.24%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.27%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.22%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment
income before preferred share dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.02%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.14%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.35%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred share dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.79%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.52%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.55%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment
income available to common shareholders</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.23%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.62%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">5.80%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2"><b>SUPPLEMENTAL DATA:</b></font></td>

<td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Average
net assets of common shareholders (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 93,504</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 91,808</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 90,967</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Portfolio turnover</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">9%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">11%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">80%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net assets
of common shareholders, end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 96,475</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 91,260</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 86,431</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred shares value outstanding,
end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 56,000</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 56,000</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 56,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Asset coverage
per preferred share, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 68,073</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 65,744</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 63,587</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

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

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

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

<td>&nbsp;</td></tr>
</table>
<p><font size="2">The information in the above Financial Highlights represents
    the performance for a common share outstanding, total investment returns,
    ratios to average net assets and other supplemental data for each period
    indicated. This information has been determined based upon financial information
    provided in the financial statements and market price data for the Trust&#146;s
common shares.</font></p>
<p align="center"><font size="2">See Notes to Financial Statements.</font>
<p>
<p>
<p align='center'><font size="2">66</font>
<hr noshade size=4><PAGE>
<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font>
<p><b><font size="3">BlackRock New York Municipal Bond Trust (BQH)</font>
</b>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td valign="bottom" >&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>

<td align=center valign="bottom"><b><font size="2">For the period</font></b></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">Six Months Ended</font></b></td>
<td valign="bottom">&nbsp;</td>
<td colspan="3" align=center valign="bottom"><b><font size="2">Year Ended August 31,</font></b></td>
<td align=center valign="bottom">&nbsp;</td>

<td align=center valign="bottom"><b><font size="2">April 30, 2002<sup>1</sup></font></b></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">February 28, 2005</font></b></td>
<td valign="bottom">&nbsp;</td>
<td colspan="3" align=center valign="bottom"><hr size="1" noshade>  </td>
<td align=center valign="bottom">&nbsp;</td>

<td align=center valign="bottom"><b><font size="2"><font size="2">through</font></font></b></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><center>
  <b><font size="2">(unaudited)</font>
  </b>
</center></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">2004</font></b></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">2003</font></b></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">August 31, 2002</font></b></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, beginning of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.09</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.15</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.83</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.33<sup>2</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.56</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.13</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.12</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.25</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.67</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.81</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.71)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.62</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
and distributions to preferred shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.06)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.07)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.09)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.02)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.01)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
increase from investment operations</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.17</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.87</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.31</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.85</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Dividends
and distributions to common shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.46)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.93)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.92)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.23)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.06)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Total
dividends and distributions</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.46)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.93)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.98)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.23)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.03)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.01)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.09)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Total
capital charges</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.01)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.12)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.80</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.09</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.15</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.83</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2">Market
price, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.50</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.97</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  13.35</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.50</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2"><b>TOTAL
INVESTMENT RETURN<sup>3</sup></b></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.20%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">11.83%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(1.26)%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(1.78)%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>
</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>COMMON SHAREHOLDERS:<sup>4</sup></b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.09%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.11%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.12%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.12%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses after fees waived and
before fees paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.10%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.12%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.12%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.12%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses before
fees waived and paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.58%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.60%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.60%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.54%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment income before
preferred share dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.40%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.57%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.57%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">5.24%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred share
dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.81%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.48%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.62%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.50%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment income available
to common shareholders</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.59%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.09%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.95%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">4.74%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Average
net assets of common shareholders (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 41,507</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 40,396</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 40,072</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 38,183</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Portfolio turnover</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">16%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">15%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net assets of common shareholders,
end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 42,666</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 40,757</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 38,207</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 40,062</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred shares
value outstanding, end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 24,200</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 24,200</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 24,200</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 24,200</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Asset coverage per preferred
share, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 69,082</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 67,108</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 64,473</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 66,390</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

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

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

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

<td>&nbsp;</td></tr>
</table>

<p><font size="2">The information in the above Financial Highlights represents
    the operating performance for a common share outstanding, total investment
    returns, ratios to average net assets and other supplemental data for each
    period indicated. This information has been determined based upon financial
    information provided in the financial statements and market price data for
the Trust&#146;s common shares.</font></p>
<p align="center"><font size="2">See Notes to Financial Statements.</font>
<p>
<p>
<p align='center'><font size="2">67</font>
<hr noshade size=4><PAGE>
<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font>
<p><b><font size="3">BlackRock New York Municipal Income Trust II (BFY)</font>
</b>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>

<td align=center><b><font size="2">For the period</font></b></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><b><font size="2">Six Months Ended</font></b></td>
<td>&nbsp;</td>
<td colspan="3" align=center><b><font size="2">Year Ended August 31,</font></b></td>
<td align=center>&nbsp;</td>

<td align=center><b><font size="2">July 30, 2002<sup>1</sup></font></b></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><b><font size="2">February 28, 2005</font></b></td>
<td>&nbsp;</td>
<td colspan="3" align=center><hr size="1" noshade>  </td>
<td align=center>&nbsp;</td>

<td align=center><b><font size="2"><font size="2">through</font></font></b></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><center>
  <b><font size="2">(unaudited)</font>
  </b>
</center></td>
<td>&nbsp;</td>
<td align=center><b><font size="2">2004</font></b></td>
<td>&nbsp;</td>
<td align=center><b><font size="2">2003</font></b></td>
<td>&nbsp;</td>
<td align=center><b><font size="2">August 31, 2002</font></b></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td COLSPAN='12' align=left><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">Net
asset value, beginning of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.16</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  13.36</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.47</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.33<sup>2</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td COLSPAN='12' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td COLSPAN='12' align=left><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.53</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.04</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.98</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.02</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.75</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.79</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.94)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.15</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
to preferred shareholders from net investment income</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.06)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.08)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.10)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td COLSPAN='12' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">Net
increase (decrease) from investment operations</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.22</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.75</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.06)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.17</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td COLSPAN='12' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">Dividends
to common shareholders from net investment income</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.47)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.95)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.94)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td COLSPAN='12' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td COLSPAN='12' align=left><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.03)</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.11)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td COLSPAN='12' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">Total
capital charges</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.11)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.03)</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td COLSPAN='12' ><HR noshade size=1></td>
</tr>
<tr valign=bottom><td align=left><font size="2">Net
asset value, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.91</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.16</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  13.36</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.47</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td COLSPAN='12' ><HR noshade size=3></td>
</tr>


<tr valign=bottom><td align=left><font size="2">Market
price, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.60</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  13.70</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  13.12</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  15.10</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td COLSPAN='12' ><HR noshade size=3></td>
</tr>


<tr valign=bottom><td align=left><font size="2"><b>TOTAL
INVESTMENT RETURN<sup>3</sup></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10.13%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11.82%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(6.93)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.67%</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td COLSPAN='12' ><HR noshade size=3></td>
</tr>


<tr valign=bottom><td COLSPAN='12' align=left><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>
</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>COMMON SHAREHOLDERS:<sup>4</sup></b></font></td>
</tr>
<tr valign=bottom><td align=left><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.06%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.07%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.00%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.43%<sup>5,6</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">Expenses after
fees waived and before fees paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.06%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.08%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.03%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.43%<sup>5,6</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">Expenses before fees waived and
paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.31%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.32%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.27%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.58%<sup>5,6</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">Net investment
income before preferred share dividends</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7.28%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7.36%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6.95%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.77%<sup>5,6</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">Preferred share dividends</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.82%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.59%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.68%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;%<sup>5,6</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">Net investment
income available to common shareholders</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6.46%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6.77%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6.27%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.77%<sup>5,6</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2"><b>SUPPLEMENTAL DATA:</b></font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">Average
net assets of common shareholders (000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 71,693</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 70,018</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 69,863</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 64,673</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">Portfolio turnover</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">14%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">40%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;%</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">Net assets
of common shareholders, end of period (000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 73,636</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 69,903</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 65,953</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 70,276</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">Preferred shares value outstanding,
end of period (000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 44,650</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 44,650</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 44,650</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$     &#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=bottom><td align=left><font size="2">Asset coverage
per preferred share, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 66,234</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 64,144</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 61,930</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$     &#151;</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top>
  <td COLSPAN='4' ><hr align="left" width="140" size="1">    </td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

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

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

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

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

<td>&nbsp;</td></tr>
</table>

<p><font size="2">The information in the above Financial Highlights represents
    the operating performance for a common share outstanding, total investment
    returns, ratios to average net assets and other supplemental data for each
    period indicated. This information has been determined based upon financial
    information provided in the financial statements and market price data for
the Trust&#146;s common shares.</font></p>
<p align="center"><font size="2">See Notes to Financial Statements.</font>
<p>
<p>
<p align='center'><font size="2">68</font>
<hr noshade size=4><PAGE>
<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font>
<p><font size="3"><b>BlackRock Virginia Municipal Bond Trust (BHV)</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td valign="bottom" >&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>

<td align=center valign="bottom"><b><font size="2">For the period</font></b></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><center>
  <b><font size="2">Six Months Ended</font>
  </b>
</center></td>
<td valign="bottom">&nbsp;</td>
<td colspan="3" align=center valign="bottom"><b><font size="2">Year Ended August 31,</font></b></td>
<td align=center valign="bottom">&nbsp;</td>

<td align=center valign="bottom"><b><font size="2">April 30, 2002<sup>1</sup></font></b></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><center>
  <b><font size="2">February 28, 2005</font>
  </b>
</center></td>
<td valign="bottom">&nbsp;</td>
<td colspan="3" align=center valign="bottom"><hr size="1" noshade>  </td>
<td align=center valign="bottom">&nbsp;</td>

<td align=center valign="bottom"><b><font size="2"><font size="2">through</font></font></b></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><center>
  <b><font size="2">(unaudited)</font>
  </b>
</center></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">2004</font></b></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">2003</font></b></td>
<td valign="bottom">&nbsp;</td>
<td align=center valign="bottom"><b><font size="2">August 31, 2002</font></b></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, beginning of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.47</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.46</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.90</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.33<sup>2</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.54</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.09</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.09</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.27</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.56</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.86</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.44)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.65</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
and distributions to preferred shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.06)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.07)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.08)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.03)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.02)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
increase from investment operations</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.04</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.88</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.55</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.89</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Dividends
and distributions to common shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.43)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.87)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.85)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.21)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.10)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Total
dividends and distributions</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.43)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.87)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.95)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.21)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.02)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.04)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.09)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Total
capital charges</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.04)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">(0.11)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net
asset value, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  16.08</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.47</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.46</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.90</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2">Market
price, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  16.51</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.34</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  14.40</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$  15.20</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left valign="bottom"><font size="2"><b>TOTAL
INVESTMENT RETURN<sup>3</sup></b></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">10.62%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">12.79%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.94%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">2.81%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='12' valign="bottom" ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='12' align=left valign="bottom"><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>
</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>COMMON SHAREHOLDERS:<sup>4</sup></b></font></td>
</tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.21%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.25%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.17%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.12%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses after fees waived and
before fees paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.22%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.26%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.17%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.12%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Expenses before
fees waived and paid indirectly</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.69%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.73%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.64%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.54%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment income before
preferred share dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.02%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.15%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.23%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">5.70%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred share
dividends</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.81%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.47%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.53%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.54%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net investment income available
to common shareholders</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.21%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.68%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.70%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">5.16%<sup>5</sup></font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>

<td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td><td valign="bottom">&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Average
net assets of common shareholders (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 23,998</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 23,273</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 22,896</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 21,321</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Portfolio turnover</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&#151;%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">14%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">18%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">8%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Net assets of common shareholders,
end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 24,519</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 23,527</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 21,944</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 22,545</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Preferred shares
value outstanding, end of period (000)</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 13,525</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 13,525</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 13,525</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 13,525</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left valign="bottom"><font size="2">Asset coverage per preferred
share, end of period</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 70,326</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 68,490</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 65,562</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 66,674</font></td>

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

<p><p><table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><hr align="left" width="140" size="1">
      </td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

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

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the Trust&#146;s dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

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

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

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

<td>&nbsp;</td></tr>
</table>

<p><font size="2">The information in the above Financial Highlights represents
    the operating performance for a common share outstanding, total investment
    returns, ratios to average net assets and other supplemental data for each
    period indicated. This information has been determined based upon financial
    information provided in the financial statements and market price data for
the Trust&#146;s common shares.</font></p>
<p align="center"><font size="2">See Notes to Financial Statements.</font>
<p>
<p>
<p align='center'><font size="2">69</font>
<HR noshade size=4><PAGE>
<P>
<B><FONT size=4 face="serif">NOTES TO FINANCIAL STATEMENTS (unaudited)</FONT></B></P>
<hr size="1" noshade>

<P>
<B><FONT face="serif">Note 1. Organization &amp; Accounting Policies</FONT></B></P>
<P>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BlackRock Insured Municipal Income Trust (&#147;Insured Municipal&#148;), BlackRock California Insured Municipal Income Trust (&#147;California Insured&#148;), BlackRock Florida Insured Municipal Income Trust (&#147;Florida
Insured&#148;), BlackRock New York Insured Municipal Income Trust (&#147;New York Insured&#148;) (collectively, the &#147;Insured Trusts&#148;), BlackRock </FONT><FONT size=2 face="serif">Municipal
Bond Trust (&#147;Municipal Bond&#148;), BlackRock California Municipal Bond Trust (&#147;California Bond&#148;), BlackRock Florida Municipal Bond Trust (&#147;Florida Bond&#148;), BlackRock Maryland Municipal
Bond Trust (&#147;Maryland Bond&#148;), BlackRock New Jersey Municipal Bond Trust (&#147;New Jersey Bond&#148;), BlackRock New York Municipal Bond Trust (&#147;New York Bond&#148;), BlackRock Virginia Municipal Bond Trust (&#147;Virginia Bond&#148;)
(collectively, the &#147;Bond Trusts&#148;), BlackRock Municipal Income Trust II (&#147;Municipal Income II&#148;), BlackRock California Municipal Income Trust II (&#147;California Income II&#148;) and BlackRock New York Municipal Income Trust II
(&#147;New York Income II&#148;) (collectively the &#147;Income II Trusts&#148;) (collectively, the &#147;Trusts&#148;)
are organized as Delaware statutory trusts. Insured Municipal, Municipal Bond
and Municipal Income II are registered as diversified closed-end management investment
companies under the Investment Company Act of 1940, as amended. California Insured,
California Bond, California Income II, Florida Insured, Florida Bond, Maryland
Bond, New Jersey Bond, New York Insured, New York Bond, New York Income II and
Virginia Bond are registered as non-diversified closed-end management investment
companies under the Investment Company Act of 1940, as amended.</FONT></P>
<P>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>The following is a summary of significant accounting policies followed by the Trusts.</FONT></P>
<P>
<B><FONT size=2 face="serif">Investments Valuation: </FONT></B><FONT size=2 face="serif">Municipal investments (including commitments to purchase such investments on a &#147;when-issued&#148; basis) are valued on the basis of prices provided by
dealers or pricing services selected under the supervision of each Trust&#146;s Board of Trustees (each, a &#147;Board&#148;). In determining the value of a particular investment, pricing services may use certain information with respect to
transactions in such investments, quotations from bond dealers, market transactions in comparable investments and various relationships between investments. A futures contract is valued at the last sale price as of the close of the commodities
exchange on which it trades. Short-term securities may be valued at amortized cost. Investments in open-end investment companies are valued at net asset value. Any investments or other assets for which such current market quotations are not readily
available are valued at fair value (&#147;Fair Value Assets&#148;) as determined in good faith under procedures established by, and under the general supervision and responsibility of, each Trust&#146;s Board. The investment Advisor and/or
Sub-Advisor will submit its recommendations regarding the valuation and/or valuation methodologies for Fair Value Assets to a valuation committee. The valuation committee may accept, modify or reject any recommendations. The pricing of all Fair
Value Assets shall be subsequently reported to and ratified by the Board.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">When determining the price for a Fair Value Asset, the investment advisor and/or sub-advisor shall seek to determine the price that the Trust might reasonably expect to receive from the current
sale of that asset in an arm&#146;s-length transaction. Fair value determinations shall be based upon all available factors that BlackRock Advisors, Inc. deems relevant.</FONT></P>
<P>
<B><FONT size=2 face="serif">Investment Transactions and Investment Income: </FONT></B><FONT size=2 face="serif">Investment transactions are recorded on trade date. Realized and unrealized gains and losses are calculated on the identified cost
basis. Each Trust also records interest income on an accrual basis and amortizes premium and/or accretes discount on securities purchased using the interest method.</FONT></P>
<P>
<B><FONT size=2 face="serif">Financial Futures Contracts: </FONT></B><FONT size=2 face="serif">A futures contract is an agreement between two parties to buy and sell a financial instrument for a set price on a future date. Initial margin deposits
are made upon entering into futures contracts and can be either cash or securities. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by &#147;marking-to-market&#148; on
a daily basis to reflect the market value of the contract at the end of each day&#146;s trading. Variation margin payments are made or received, depending upon whether unrealized gains or losses are incurred. When the contract is closed, the Trust
records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trust&#146;s basis in the contract. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Financial futures contracts, when used by the Trusts, help in maintaining a targeted duration. Futures contracts can be sold to effectively shorten an otherwise longer duration portfolio. In
the same sense, futures contracts can be purchased to lengthen a portfolio that is shorter than its duration target. Thus, by buying or selling futures contracts, the Trusts may attempt to manage the duration of positions so that changes in interest
rates do not change the duration of the portfolio unexpectedly.</FONT></P>
<P>
<B><FONT size=2 face="serif">Segregation: </FONT></B><FONT size=2 face="serif">In cases in which the Investment Company Act of 1940, as amended, and the interpretive positions of the Securities and Exchange Commission (the &#147;Commission&#148;)
require that each Trust segregate assets in connection with certain investments (e.g., when-issued securities or futures contracts), each Trust will, consistent with certain interpretive letters issued by the Commission, designate on its books and
records cash or other liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. </FONT></P>
<P><B><FONT size=2 face="serif">Federal Income Taxes: </FONT></B><FONT size=2
face="serif">It is each Trust&#146;s intention to continue to be treated as a regulated investment company under the Internal Revenue Code and to distribute sufficient net income to shareholders. For this reason and because substantially all of the
  gross income of each Trust consists of tax-exempt interest, no Federal income tax provisions are required.</FONT></P>
<P>
<B><FONT size=2 face="serif">Dividends and Distributions: </FONT></B><FONT size=2 face="serif">Each Trust declares and pays dividends and distributions to common shareholders monthly from net investment income, net realized short-term capital gains
and other sources, if necessary. Net long-term capital gains, if any, in excess of loss carryforwards may be distributed annually. Dividends and distributions are recorded on the ex-dividend date. Income distributions and capital gain distributions
are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. Dividends and distributions to preferred shareholders are accrued and determined as described in
Note 4.</FONT></P>
<P>
<B><FONT size=2 face="serif">Estimates: </FONT></B><FONT size=2 face="serif">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from these estimates.</FONT></P>
<P align="center">
<FONT size=2 face="serif">70</FONT></P>

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

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


<P>
<B><FONT size=2 face="serif">Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: </FONT></B><FONT size=2 face="serif">Under the deferred compensation plan approved by each Trust&#146;s Board, non-interested Trustees are
required to defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other BlackRock closed-end trusts selected by the Trustees.
This has the same economic effect for the Trustees as if the Trustees had invested the deferred amounts in such Trusts.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of the Trust. Each Trust may, however, elect to invest in
common shares of those Trusts selected by the Trustees in order to match its deferred compensation obligations.</FONT></P>
<P>
<B><FONT face="serif">Note 2. Agreements</FONT></B></P>
<P>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Trust has an Investment Management Agreement with BlackRock Advisors, Inc. (the &#147;Advisor&#148;), a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial Management, Inc., a wholly owned
subsidiary </FONT><FONT size=2 face="serif">of BlackRock, Inc., serves as sub-advisor to each Trust. BlackRock, Inc. is an indirect majority owned subsidiary of The PNC Financial Services Group, Inc. The investment management agreement covers both investment advisory
and administration services.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Each Trust&#146;s investment advisory fee paid to the Advisor is computed weekly, accrued daily and payable monthly based on an annual rate, 0.55% for the Insured Trusts and Income II Trusts
and 0.65% for the Bond Trusts, of each Trust&#146;s average weekly managed assets. &#147;Managed assets&#148; means the total assets of a Trust (including any assets attributable to any preferred shares that may be outstanding) minus the sum of
accrued liabilities (other than debt representing financial leverage). The Advisor has voluntarily agreed to waive a portion of the investment advisory fee or other expenses of each Trust. With respect to the Insured Trusts the waiver, as a
percentage of managed assets, is as follows: 0.20% for the first 5 years of each Trust&#146;s operations, 0.15% in year 6, 0.10% in year 7, and 0.05% in year 8. With respect to the Bond Trusts the waiver, as a percentage of managed assets, is as
follows: 0.30% for the first 5 years of each Trust&#146;s operations, 0.25% in year 6, 0.20% in year 7, 0.15% in year 8, 0.10% in year 9 and 0.05% in year 10. With respect to the Income II Trusts the waiver, as a percentage of managed assets, is as
follows: 0.15% for the first 5 years of each Trust&#146;s operations, 0.10% in year 6 through year 7, 0.05% in year 8 through yyear 10.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Pursuant to the agreements, the Advisor provides continuous supervision of the investment portfolio and pays the compensation of officers of each Trust who are affiliated persons of the
Advisor, as well as occupancy and certain clerical and accounting costs of each Trust. Each Trust bears all other costs and expenses, which include reimbursements to the Advisor for cost of employees that provide pricing, secondary market support,
and compliance services to each Trust. For the six months ended February 28, 2005, the Trusts reimbursed the Advisor the following amounts:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=29% align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="3" align=left>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
          </center></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=28% align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD colspan="3" align=left>
      <center>
        <B><FONT size=2 face="serif">Amount</FONT></B>&nbsp;
          </center></TD>
  </TR>
<TR>
        <TD>
<HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD width="7%">
<HR noshade size=1>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD width="6%">
<HR noshade size=1>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD width=4% align=right>
<FONT size=2 face="serif">12,109</FONT>&nbsp;
        </TD>
        <TD width=7%>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD width=4% align=right>
<FONT size=2 face="serif">1,539</FONT>&nbsp;
        </TD>
    <TD width=6% align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,778</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">970</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,245</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">644</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,407</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,736</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,539</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">992</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,530</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,259</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,051</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">738</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Pursuant to the terms of each Trust&#146;s custody agreement, each Trust received earnings credits from its custodian for positive cash balances maintained, which are used to offset custody
fees.</FONT></P>
<P>
<B><FONT face="serif">Note 3. Portfolio Securities</FONT></B></P>
<P>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases and sales of investment securities, other than short-term investments and U.S. government securities, for the six months ended February 28, 2005, were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="3" align=left>
      <center>
        <B><FONT size=2 face="serif">Purchases</FONT></B>&nbsp;
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="3" align=left>
      <center>
        <B><FONT size=2 face="serif">Sales</FONT></B>&nbsp;
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD colspan="3">
      <center>
        <B><FONT size=2 face="serif">Purchases</FONT></B>&nbsp;
          </center></TD>
        <TD align=left></TD>
    <TD colspan="3" align=left> <center>
      <B><FONT size=2 face="serif">Sales</FONT></B>&nbsp;
    </center></TD>
  </TR>
<TR>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD colspan="3">
      <HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
    <TD><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">149,792,562</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">153,969,890</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD><FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,260,610</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">93,969,889</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">101,049,357</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">750,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">600,364</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">102,620,957</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">110,517,290</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,958,100</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,321,884</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,094,040</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,574,206</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,848,410</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,855,645</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,327,581</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,780,660</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">522,890</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,239</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,719,071</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">16,264,877</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,094,780</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,592,260</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

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

        </TD>
        <TD align=right>
<FONT size=2 face="serif">756,377</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">14,989</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no purchases or sales of U.S. government securities.</FONT></P>
<P>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Details of open financial futures contracts at February 28, 2005 were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>&nbsp;

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

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

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

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

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Expiration</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Value at Trade</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">February 28,</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Unrealized</FONT></B>&nbsp;
          </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Contracts</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Type</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Date</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Date</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">2005</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Appreciation</FONT></B>&nbsp;
          </center></TD>
  </TR>
<TR>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

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

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

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

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

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

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

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

        </TD>
    <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,683</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Jun &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#36;185,738,643</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#36;184,919,625</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>&nbsp;
</TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;819,018</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">607</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Jun &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">66,989,372</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">66,694,125</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">295,247</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,406</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Jun &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">155,168,611</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">154,484,250</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">684,361</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">359</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Jun &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">39,619,727</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">39,445,125</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">174,602</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">216</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Jun &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">23,837,989</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">23,733,000</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">104,989</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">71</FONT></P>

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

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


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=17% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=3%>&nbsp;</TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=16% align=left>&nbsp;

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

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

          <center>
    </center></TD>
        <TD width=2%><center>
    </center></TD>
        <TD width=1%>
          <center>
    </center></TD>
        <TD width=11% colspan="2" align=center>
      <center>
        <B><FONT size=2 face="serif">Value at</FONT></B>&nbsp;
          </center>      <center>
      </center></TD>
        <TD width=1%>
          <center>
    </center></TD>
        <TD width=11% align=left>

          <center>
    </center></TD>
    <TD width=2% align=left><center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Expiration</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Value at Trade</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">February 28,</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Unrealized</FONT></B>&nbsp;
          </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Contracts</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Type</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Date</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
      <center>
        <B><FONT size=2 face="serif">Date</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan="2" align=center>
      <center>
        <B><FONT size=2 face="serif">2005</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Appreciation</FONT></B>&nbsp;
          </center></TD>
  </TR>
<TR>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">581</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Jun &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">64,120,018</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD width=11% align=right>
<FONT size=2 face="serif">63,837,375</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">282,643</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">507</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Jun &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">55,953,307</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">55,706,625</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">246,682</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">173</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Jun &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">19,092,459</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">19,008,375</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">84,084</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">107</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Jun &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">11,808,575</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">11,756,625</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">51,950</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">152</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Jun &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16,774,928</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16,701,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">73,928</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">381</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Jun &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">42,047,590</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">41,862,375</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">185,215</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">143</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Jun &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,781,597</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,712,125</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">69,472</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">255</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Jun &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">28,142,155</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">28,018,125</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">124,030</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">94</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">10 Yr. U.S. T-Note</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Jun &#146;04</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,373,906</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,328,250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">45,656</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">At February 28, 2005, the total cost of securities for Federal income tax purposes and the aggregate gross unrealized appreciation and depreciation for securities held by each Trust were as
follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=24% align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Cost</FONT></B>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Appreciation</FONT></B>&nbsp;
          </center></TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD colspan="3" align=left>
      <center>
        <B><FONT size=2 face="serif">Depreciation</FONT></B>&nbsp;
          </center></TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Net</FONT></B>&nbsp;
        </TD>
  </TR>
<TR>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="7%">
<HR noshade size=1>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=13% align=center>
      <div align="right"><FONT size=2 face="serif">&#36;585,209,817</FONT>&nbsp;
          </div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">&#36;36,638,657</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD width=6% align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=6% align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD width=11% align=center>
      <div align="right"><FONT size=2 face="serif">&#36;36,638,657</FONT>&nbsp;
          </div></TD>
    <TD width=5% align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">237,148,480</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14,720,873</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">22,125</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">14,698,748</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">516,697,486</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">31,073,914</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">418,435</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">30,655,479</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">118,980,816</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,445,155</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">4,445,155</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">78,777,174</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,969,072</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,123</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">4,960,949</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">177,440,252</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,428,798</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">430,720</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">9,998,078</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">196,239,877</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,281,206</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">41,051</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">7,240,155</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">75,748,261</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,625,004</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,583</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">5,614,421</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">46,046,209</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,122,445</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,312</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">3,115,133</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">52,031,488</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,185,508</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">186,643</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">2,998,865</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">146,081,013</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,650,749</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,497</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">5,637,252</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">62,043,643</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,138,415</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">4,138,415</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">112,413,815</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,371,238</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,196</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">5,366,042</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">34,724,877</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,573,321</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">2,573,321</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">For Federal income tax purposes, the following Trusts had capital loss carryforwards as of their last respective tax year-end (the Bond Trusts&#146; have a tax year end of October 31st and the
Income II Trusts&#146; have a tax year end of June 30th). These amounts may be used to offset future realized capital gains, if any:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=17% align=left>&nbsp;</TD>
    <TD width=2%>&nbsp;</TD>
    <TD colspan="2" align=left><center>
        <B><FONT size=2 face="serif">Capital Loss</FONT></B>&nbsp;
    </center></TD>
    <TD width=2%>&nbsp;</TD>
    <TD width=8% align=left>&nbsp;</TD>
    <TD width=2%>&nbsp;</TD>
    <TD width=17% align=left><B><FONT size=2 face="serif">Capital Loss</FONT></B>&nbsp; </TD>
    <TD width=2%>&nbsp;</TD>
    <TD colspan="3" align=left><div align="left"></div></TD>
    <TD width=2%>&nbsp;</TD>
    <TD width=8% align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><B><FONT size=2 face="serif">Trust</FONT></B>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=left><center>
        <B><FONT size=2 face="serif">Carryforward Amount</FONT></B>&nbsp;
    </center></TD>
    <TD>&nbsp;</TD>
    <TD align=center><B><FONT size=2 face="serif">Expires</FONT></B>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=left><B><FONT size=2 face="serif">Trust</FONT></B>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align=left><center>
        <B><FONT size=2 face="serif">Carryforward Amount</FONT></B>&nbsp;
    </center></TD>
    <TD>&nbsp;</TD>
    <TD align=center><B><FONT size=2 face="serif">Expires</FONT></B>&nbsp; </TD>
  </TR>
  <TR>
    <TD><HR align="left" width="40" size=1 noshade>
    </TD>
    <TD></TD>
    <TD width="3%"><HR align="left" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD></TD>
    <TD><HR noshade size=1>
    </TD>
    <TD></TD>
    <TD><HR align="left" width="40" size=1 noshade>
    </TD>
    <TD></TD>
    <TD width="4%"><HR align="left" size=1 noshade>
    </TD>
    <TD colspan="2"><HR noshade size=1>
    </TD>
    <TD></TD>
    <TD><HR noshade size=1>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">Insured Municipal</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD width=10% align=right><FONT size=2 face="serif">5,849,709</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">2012</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">Maryland Bond</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT>&nbsp; </div></TD>
    <TD width=9% align=right><FONT size=2 face="serif">4,564</FONT>&nbsp; </TD>
    <TD width=7%>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">2011</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left><div align="left">
        <hr align="left" size=2 noshade>
    </div></TD>
    <TD align=left><hr noshade size=2></TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left><div align="left"></div></TD>
    <TD align=right><FONT size=2 face="serif">577,920</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">2012</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD><div align="left"></div></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD><HR align="left" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">Municipal Bond</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right><FONT size=2 face="serif">338,279</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">2011</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT>&nbsp; </div></TD>
    <TD align=right><FONT size=2 face="serif">582,484</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left><div align="left"></div></TD>
    <TD align=right><FONT size=2 face="serif">3,044,444</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">2012</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left><div align="left">
        <hr align="left" size=2 noshade>
    </div></TD>
    <TD align=left><hr noshade size=2></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD><HR align="left" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD><div align="left"></div></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left><div align="left"></div></TD>
    <TD align=right><FONT size=2 face="serif">3,382,723</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT>&nbsp; </div></TD>
    <TD align=right><FONT size=2 face="serif">327,635</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">2012</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD><HR align="left" size=2 noshade>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD><HR align="left" size=2 noshade>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
  </TR>
  <TR>
    <TD colspan=14>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">Municipal Income II</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right><FONT size=2 face="serif">1,338,302</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">2011</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">New York Insured</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT>&nbsp; </div></TD>
    <TD align=right><FONT size=2 face="serif">103</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">2012</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left><div align="left"></div></TD>
    <TD align=right><FONT size=2 face="serif">5,200,107</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">2012</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left><div align="left">
        <hr align="left" size=2 noshade>
    </div></TD>
    <TD align=left><hr noshade size=2></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD><HR align="left" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD><div align="left"></div></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right><FONT size=2 face="serif">6,538,409</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left><div align="left"></div></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD><HR align="left" size=2 noshade>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD><font size=2 face="serif">New York Bond</font>&nbsp;</TD>
    <TD></TD>
    <TD><div align="left"><font size=2 face="serif">&#36;</font>&nbsp;</div></TD>
    <TD align="right"><font size=2 face="serif">142,736&nbsp;</font></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center"><font size=2 face="serif">2011</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">California Insured</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right><FONT size=2 face="serif">8,282</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">2012</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left><div align="left"></div></TD>
    <TD align=right><FONT size=2 face="serif">634,713</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">2012</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD><HR align="left" size=2 noshade>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD><HR align="left" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left><div align="left"></div></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT>&nbsp; </div></TD>
    <TD align=right><FONT size=2 face="serif">777,449</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD><div align="left"></div></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD><HR align="left" size=2 noshade>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
  </TR>
  <TR>
    <TD><font size=2 face="serif">California Bond</font>&nbsp;</TD>
    <TD></TD>
    <TD><font size=2 face="serif">&#36;</font> </TD>
    <TD align="right"><font size=2 face="serif">2,491,829</font>&nbsp; </TD>
    <TD></TD>
    <TD align="center"><font size=2 face="serif">2012</font>&nbsp;</TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD><div align="left"></div></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left><div align="left">
        <hr align="left" size=2 noshade>
    </div></TD>
    <TD align=left><hr noshade size=2></TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">New York Income II</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT>&nbsp; </div></TD>
    <TD align=right><FONT size=2 face="serif">722,685</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">2012</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD><div align="left"></div></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD><HR align="left" size=2 noshade>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">California Income II</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right><FONT size=2 face="serif">1,454,313</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">2011</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left><div align="left"></div></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left><div align="left"></div></TD>
    <TD align=right><FONT size=2 face="serif">1,163,822</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">2012</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left><div align="left"></div></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD><HR align="left" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD><div align="left"></div></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right><FONT size=2 face="serif">2,618,135</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">Virginia Bond</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT>&nbsp; </div></TD>
    <TD align=right><FONT size=2 face="serif">48,573</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">2011</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD><HR align="left" size=2 noshade>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD><div align="left"></div></TD>
    <TD align="right"><font size=2 face="serif">331,975</font>&nbsp;</TD>
    <TD></TD>
    <TD></TD>
    <TD align="center"><font size=2 face="serif">2012</font></TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD><div align="left"></div></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD><HR align="left" size=1 noshade>
    </TD>
    <TD><HR noshade size=1>
    </TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">Florida Bond</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT> </div></TD>
    <TD align=right><FONT size=2 face="serif">758,206</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">2012</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right><div align="left"><FONT size=2 face="serif">&#36;</FONT>&nbsp; </div></TD>
    <TD align=right><FONT size=2 face="serif">380,548</FONT>&nbsp; </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR>
    <TD></TD>
    <TD></TD>
    <TD><HR align="left" size=2 noshade>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD><HR align="left" size=2 noshade>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
  </TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Accordingly, no capital gain distributions are expected to be paid to shareholders of a Trust until that Trust has net realized capital gains in excess of its capital loss carryforward
amounts.</FONT></P>
<P align="center">
<FONT size=2 face="serif">72</FONT></P>

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

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


<P>
<B><FONT face="serif">Note 4. Distributions to Shareholders</FONT></B></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The estimated tax character of distributions paid during the six months ended February 28, 2005 were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=3 align=left>
      <center>
        <B><FONT size=2 face="serif">Six months ended February 28, 2005</FONT></B>&nbsp;
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD colspan=3>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Tax-exempt</FONT></B>&nbsp;
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2 face="serif">Ordinary</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Long-term</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Total</FONT></B>&nbsp;
          </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Distributions Paid from:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Income</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=2 face="serif">Income</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Capital Gains</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Distributions</FONT></B>&nbsp;
          </center></TD>
</TR>
<TR>
        <TD>
      <HR align="left" width="150" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;13,943,912</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#36; &#151;</FONT>&nbsp;
          </div></TD>
        <TD>
          <div align="right"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#36;&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;13,943,912</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,934,906</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>
          <div align="right"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,934,906</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,041,335</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>
          <div align="right"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">13,041,335</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,684,958</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>
          <div align="right"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,684,958</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,804,390</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>
          <div align="right"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,804,390</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,363,509</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>
          <div align="right"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,363,509</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,422,481</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>
          <div align="right"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,422,481</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,737,056</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>
          <div align="right"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,737,056</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">995,647</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>
          <div align="right"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">995,647</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,208,667</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>
          <div align="right"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,208,667</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,267,181</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>
          <div align="right"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,267,181</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,416,488</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>
          <div align="right"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,416,488</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,623,797</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>
          <div align="right"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,623,797</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">757,812</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>
          <div align="right"></div></TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">757,812</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=7 align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The tax character of distributions paid during the year ended August 31, 2004 were as follows:</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

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

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

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan=3 align=left>
 <center>
   <B><FONT size=2 face="serif">Year ended August 31, 2004</FONT></B>&nbsp;
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
          <center>
            <HR align="center" size=1 noshade>
      </center></TD>
        <TD colspan=3>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
          <center>
            <HR align="center" size=1 noshade>
      </center></TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Tax-exempt</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left> <center>
          <B><FONT size=2 face="serif">Ordinary</FONT></B>&nbsp;
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Long-term</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Total</FONT></B>&nbsp;
          </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Distributions Paid from:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Income</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left> <center>
          <B><FONT size=2 face="serif">Income</FONT></B>&nbsp;
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Capital Gains</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Distributions</FONT></B>&nbsp;
          </center></TD>
</TR>
<TR>
        <TD>
<HR align="left" width="150" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;26,673,933</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#36; &#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36; &#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;26,673,933</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">11,334,330</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">11,334,330</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,882,207</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24,882,207</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,137,946</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">73,705</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,211,651</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,444,704</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">233,112</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,008</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,686,824</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,419,618</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,419,618</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,495,387</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">719,040</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,214,427</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,358,938</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">80,766</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,439,704</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,887,652</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,887,652</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,304,183</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">121,320</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,425,503</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,272,601</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,272,601</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,693,108</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,693,108</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,074,526</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,074,526</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,430,624</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,430,624</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=9 align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">As of February 28, 2005, the components of distributable earnings on a tax basis were as follows:</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Tax-exempt</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>
 <center>
   <B><FONT size=2 face="serif">Ordinary</FONT></B>&nbsp;
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Long-term</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Unrealized Net</FONT></B>&nbsp;
          </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=2 face="serif">Income</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>
 <center>
   <B><FONT size=2 face="serif">Income</FONT></B>&nbsp;
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Gains</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <B><FONT size=2 face="serif">Appreciation</FONT></B>&nbsp;
          </center></TD>
</TR>
<TR>
        <TD>
<HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;4,363,315</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#36;&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;36,604,690</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,258,887</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14,682,449</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,644,277</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">30,624,005</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">899,378</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,439,654</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,348,596</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,953,249</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">795,440</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">9,988,856</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,361,099</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,230,396</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,357,355</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,608,160</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">797,127</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,107,769</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">911,279</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,990,778</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">865,193</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,631,497</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">997,178</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,131,811</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">283,862</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,359,492</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">693,478</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">&#151;</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,567,107</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">73</FONT></P>

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

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


<P>
<B><FONT face="serif">Note 5. Capital</FONT></B></P>
<P>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are an unlimited number of &#36;0.001 par value common shares of beneficial interest authorized for each Trust. Each Trust may classify or reclassify any unissued common shares into one or more series of
Auction </FONT><FONT size=2 face="serif">Market Preferred Shares (&#147;preferred shares&#148;).
At February 28, 2005, the shares outstanding and the shares owned by affiliates
of the Advisor of each Trust were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>&nbsp;

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

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
      <center>
        <B><FONT size=2 face="serif">Shares</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Common</FONT></B>&nbsp;
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Outstanding</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan="2" align=center>
      <center>
        <B><FONT size=2 face="serif">Shares Owned</FONT></B>&nbsp;
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Outstanding</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD colspan="2" align=center>
      <center>
        <B><FONT size=2 face="serif">Shares Owned</FONT></B>&nbsp;
          </center></TD>
  </TR>
<TR>
        <TD>
<HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">26,149,334</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,309,483</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,123,055</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,015,589</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">22,781,072</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,269,366</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,270,479</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,448,651</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,351,150</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,700,991</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7,984,696</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,937,652</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,721,409</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,524,794</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">During the six months ended February 28, 2005, California Insured, Florida Insured, Maryland Bond, New York Insured, NewYork Income II and Virginia Bond issued additional shares under their
dividend reinvestment plans of 1,694, 2,586, 435, 12,112, 2,384 and 3,779 respectively. Transactions in common shares of beneficial interest for the year ended August 31, 2004 were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD colspan=8 align=center> <B><FONT size=2 face="serif">Shares from</FONT></B> </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR>
        <TD>&nbsp;      </TD>
    <TD>&nbsp;</TD>
    <TD colspan=8><hr noshade size=1></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD width=17% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Initial</FONT></B>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD width=7%>&nbsp;</TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=11% align=left>&nbsp;

        </TD>
        <TD width=7%>&nbsp;</TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=13% align=left>&nbsp;

        </TD>
    <TD width=8% align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Public Offering</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Underwriters&#146; Exercising</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Reinvestment</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Net Increase in</FONT></B>&nbsp;
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">October 31, 2002</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">the Over-allotment Option</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">of Dividends</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Shares Outstanding</FONT></B>&nbsp;
        </TD>
  </TR>
<TR>
        <TD>
<HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">24,008,028</FONT>&nbsp;
        </TD>
        <TD width=4%>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,000,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">117,430</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">26,125,458</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,096</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">12,096</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">300,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15,364</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">315,364</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,008,028</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">250,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,997</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,264,025</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">840</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">840</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">150,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16,385</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">166,385</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,008,028</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">700,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">10,795</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">8,718,823</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,232</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,232</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,240</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,240</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,212</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,212</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,008,028</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">400,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16,080</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6,424,108</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">75,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,240</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">77,240</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,017</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4,017</FONT>&nbsp;
        </TD>
    <TD align=right>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Offering costs incurred in connection with the Trusts&#146; offering of common shares have been charged against the proceeds from the initial common share offering of the common shares and were
as follows:</FONT></P>
<TABLE width="50%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=40% align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width=11%>&nbsp;
        </TD>
        <TD width=8% align=left>
      <center>
        <B><FONT size=2 face="serif">Offering Costs</FONT></B>&nbsp;
          </center></TD>
  </TR>
<TR>
        <TD>
<HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width=40% align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD width=11%>&nbsp;
        </TD>
        <TD width=33% align=center>
<FONT size=2 face="serif">&#36;765,000</FONT>&nbsp;&nbsp;&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=40% align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD width=11%>&nbsp;
        </TD>
        <TD width=33% align=center>
<FONT size=2 face="serif">142,500</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=40% align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD width=11%>&nbsp;
        </TD>
        <TD width=33% align=center>
<FONT size=2 face="serif">246,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=40% align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD width=11%>&nbsp;
        </TD>
        <TD width=33% align=center>
<FONT size=2 face="serif">177,000</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">74&nbsp;</FONT></P>

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

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


<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">As of February 28, 2005, each Trust had the following series of preferred shares outstanding as listed in the table below. The preferred shares have a liquidation value of &#36;25,000 per share
plus any accumulated unpaid dividends.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=16% align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Series</FONT></B>
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Shares</FONT></B>
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=17% align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Series</FONT></B>
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Shares</FONT></B>
          </center></TD>
  </TR>
<TR>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD width="7%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
        <TD width="4%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD width="9%">
<HR noshade size=1>
        </TD>
        <TD width="6%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="8%">
<HR noshade size=1>
        </TD>
        <TD width="4%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">M7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,053</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">T7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,439</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,053</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,439</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">F7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,053</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">M7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3,040</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">T7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,810</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">W7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,191</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,810</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">720</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">M7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,055</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">M7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">809</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">T7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,056</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,240</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">W7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,055</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">T7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">968</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,056</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">W7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,786</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">F7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,860</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">R7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">541</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">F7</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,199</FONT>
        </TD>
        <TD align=left>&nbsp;

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

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

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

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

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

        </TD>
</TR>
<TR valign="bottom">
  <TD colspan=14 align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD colspan=14 align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underwriting discounts and offering costs incurred in connection with the preferred share offerings for the year ended August 31, 2004 have</FONT>
          </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=9 align=left>
<FONT size=2 face="serif">been charged to paid-in capital in excess of par of the common shares as follows.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

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

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

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

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

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=2 align=left>
      <center>
        <B><FONT size=2 face="serif">Underwriting</FONT></B>
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=left>
      <center>
        <B><FONT size=2 face="serif">Offering</FONT></B>
          </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Discount</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Cost</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=2 align=left>
 <center>
   <B><FONT size=2 face="serif">Discount</FONT></B>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Cost</FONT></B>
          </center></TD>
  </TR>
<TR>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;2,289,750</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;&nbsp;&nbsp;&nbsp;369,482</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#36;&nbsp;&nbsp;28,492</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">(128,162</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">50,675</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,055,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">239,168</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">48,427</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">465,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">144,518</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">560,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">151,970</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21,849</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">37,459</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">719,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">129,975</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">446,500</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">120,782</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">760,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">184,848</FONT>
        </TD>
        <TD align=left>&nbsp;

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">58,033</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD colspan=14 align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD colspan=14 align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends on seven-day preferred shares are cumulative at a rate which is reset every seven days based on the results of an auction. The</FONT>
          </div></TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=14 align=left>
<FONT size=2 face="serif">dividend ranges on the preferred shares for each of the Trusts for the six months ended February 28, 2005 were as follows:</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Low</FONT></B>
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Low</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">High</FONT></B>
          </center></TD>
  </TR>
<TR>
        <TD>
<HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.63</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.21</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.45</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.18</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.43</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.60</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.08</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.40</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.59</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.06</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.50</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.03</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.40</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.06</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.45</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.16</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.85</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.65</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.73</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.45</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.15</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.20</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">A Trust may not declare dividends or make other distributions on common shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with
respect to the outstanding preferred shares would be less than 200%.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The preferred shares are redeemable at the option of each Trust, in whole or in part, on any dividend payment date at &#36;25,000 per share plus any accumulated unpaid dividends whether or not
declared. The preferred shares are also subject to mandatory redemption at &#36;25,000 per share plus any accumulated or unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of
a Trust, as set forth in each Trust&#146;s Declaration of Trust, are not satisfied.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The holders of preferred shares have voting rights equal to the holders of common shares (one vote per share) and will vote together with holders of common shares as a single class. However,
holders of preferred shares, voting as a separate class, are also entitled to elect two Trustees for each Trust. In addition, the Investment Company Act of 1940, as amended, requires that along with approval by shareholders that might otherwise be
required, the approval of the holders of a majority of any outstanding preferred shares, voting separately as a class, would be required to (a) adopt any plan of reorganization that would adversely affect the preferred shares, (b) change a
Trust&#146;s subclassification as a closed-end investment company or change its fundamental investment restrictions, and (c) change its business so as to cease to be an investment company.</FONT></P>
<P align="center">
<FONT size=2 face="serif">75</FONT></P>

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

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


<P>
<B><FONT face="serif">Note 6. Dividends</FONT></B></P>
<P>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequent to February 28, 2005, the Board of each
Trust declared dividends from undistributed earnings per common share payable
April 1, 2005, to shareholders of record on March 13, 2005. The per share com</FONT><FONT size=2 face="serif">mon
dividends declared were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=20% align=center>
<B><FONT size=2 face="serif">Common Dividend</FONT></B>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=21% align=left>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=19% align=center>
<B><FONT size=2 face="serif">Common Dividend</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Per Share</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Per Share</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;0.078125&nbsp;&nbsp;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;0.077808</FONT>&nbsp;&nbsp;&nbsp;        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">0.086375</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">0.071350</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">0.083750</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">0.078582</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">0.075000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">0.075000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">0.079656</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">0.077099</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">0.081250</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">0.078750</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">0.075000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">0.072428</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The dividends declared on preferred shares for the period March 1, 2005 to March 31, 2005 for each of the Trusts were as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=23% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=9% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Dividends</FONT></B>&nbsp;
          </center></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=23% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=9% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Dividends</FONT></B>&nbsp;
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Series</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=2 face="serif">Declared</FONT></B>&nbsp;
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=2 face="serif">Trust</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Series</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=2 face="serif">Declared</FONT></B>&nbsp;
        </TD>
  </TR>
<TR>
        <TD>
<HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
      <HR align="left" width="40" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Insured Municipal</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=10% align=right>
<FONT size=2 face="serif">&#36;143,460</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">California Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=10% align=center>
      <div align="right"><FONT size=2 face="serif">&#36;58,639</FONT>&nbsp;
          </div></TD>
    <TD width=3% align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">147,185</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">60,222</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">F7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">116,533</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">144,461</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">82,446</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Florida Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">58,145</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">87,477</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Maryland Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">35,150</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Municipal Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">94,879</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New Jersey Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">M7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">35,216</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">93,157</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">87,091</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">97,345</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">T7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">36,523</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">98,811</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">New York Income II</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">W7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">59,063</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Insured</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">F7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">63,147</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Virginia Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">R7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">25,162</FONT>&nbsp;
          </div></TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">California Bond</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">F7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">42,600</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

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

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

        </TD>
    <TD align=left>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">76</FONT></P>

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

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


<P align="center">
<B><FONT face="serif">DIVIDEND REINVESTMENT PLANS</FONT></B></P>
<hr size="1" noshade>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Pursuant to each Trust&#146;s Dividend Reinvestment Plan (the &#147;Plan&#148;), common shareholders are automatically enrolled to have all distributions of dividends and capital gains
reinvested by EquiServe Trust Company, N.A. (the &#147;Plan Agent&#148;) in the respective Trust&#146;s shares pursuant to the Plan. Shareholders who do not participate in the Plan will receive all distributions in cash paid by check and mailed
directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent, which serves as agent for the shareholders in administering the Plan.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">After a Trust declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants&#146; account, depending upon the circumstances
described below, either (i) through receipt of unissued but authorized shares from the Trust (&#147;newly issued shares&#148;) or (ii) by open market purchases. If, on the dividend payment date, the Net Asset Value (&#147;NAV&#148;) is equal to or
less than the market price per share plus estimated brokerage commissions (such condition being referred to herein as &#147;market premium&#148;), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants.
The number of newly issued shares to be credited to each participants&#146; account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market
price on the payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions
(such condition being referred to herein as &#147;market discount&#148;), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open market purchases.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Plan Administrator prior to the
dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Plan Agent&#146;s fees for the handling of the reinvestment of dividends and distributions will be paid by each Trust. However, each participant will pay a pro rata share of brokerage
commissions incurred with respect to the Plan Agent&#146;s open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any
Federal income tax that may be payable on such dividends or distributions.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, each Trust reserves the right to amend the Plan to include
a service charge payable by the participants. Participants who request a sale of shares through the Plan Agent are subject to a &#36;2.50 sales fee and a &#36;0.15 per share sold brokerage commission. All correspondence concerning the Plan should be
directed to the Plan Agent at 250 Royall Street, Canton, MA 02021, or by calling (800) 699-1BFM.</FONT></P>
<P align="center">
<FONT size=2 face="serif">77</FONT></P>

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

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


<P align="center">
<B><FONT face="serif">ADDITIONAL INFORMATION</FONT></B></P>
<hr size="1" noshade>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">There has been no material changes in the Trusts&#146; investment objective or policies that have not been approved by the shareholders or to their charters or by-laws or in the principle risk
factors associated with investment in the Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts&#146; portfolio.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Quarterly performance and other information regarding the Trusts may be found on BlackRock&#146;s website, which can be accessed at
http://www.blackrock.com/indiv/products/closedendfunds/funds.html. This reference to BlackRock&#146;s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended, to incorporate
BlackRock&#146;s website into this report.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Certain of the officers of the Trusts listed on the inside back cover of this Report to Shareholders are also officers of the Advisor or Sub-Advisor. They serve in the following capacities for
the Advisor or Sub-Advisor: Robert S. Kapito&#151;Director and Vice Chairman of the Advisor and the Sub-Advisor, Kevin M. Klingert&#151;Director of BlackRock Advisors, Inc. and Managing Director of the Advisor and the Sub-Advisor, Henry Gabbay, Anne
Ackerley and Bartholomew Battista&#151;Managing Directors of the Advisor and the Sub-Advisor, Richard M. Shea, James Kong and Vincent Tritto&#151;Managing Directors of the Sub-Advisor, and Brian P. Kindelan&#151;Managing Director of the
Advisor.</FONT></P>
<P align="center">
<FONT size=2 face="serif">78</FONT></P>

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

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


<P align="center">
<FONT size=6 face="serif">BlackRock Closed-End Funds</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Trustees</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT face="serif">Transfer Agent</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Ralph L. Schlosstein, </FONT><I><FONT size=2 face="serif">Chairman</FONT></I>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">EquiServe Trust Company, N.A.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Andrew F. Brimmer</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">250 Royall Street</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Richard E. Cavanagh</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Canton, MA 02021</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Kent Dixon</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">(800)</FONT> <FONT size=2 face="serif">699-1BFM</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Frank J. Fabozzi</FONT>&nbsp; </TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">R. Glenn Hubbard</FONT>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT face="serif">Auction Agent</FONT><SUP><FONT face="serif">2</FONT></SUP>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Robert S. Kapito</FONT>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Bank of New York</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Kathleen F. Feldstein</FONT><SUP><FONT size=2 face="serif">1</FONT></SUP>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">100 Church Street, 8th Floor</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">James Clayburn
      La Force, Jr.</FONT>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">New York, NY 10286</FONT>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Walter F. Mondale</FONT>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

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

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT face="serif">Auction Agent</FONT><SUP><FONT face="serif">3</FONT></SUP>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left> <FONT face="serif">Officers</FONT>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Deutsche Bank
            Trust Company Americas</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Robert S. Kapito, </FONT><I><FONT size=2 face="serif">President</FONT></I>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">60 Wall Street,
            27th Floor</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Henry Gabbay, </FONT><I><FONT size=2 face="serif">Treasurer</FONT></I>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">New York, NY 10005</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Bartholomew Battista, </FONT><I><FONT size=2 face="serif">Chief
        Compliance Officer</FONT></I>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Anne Ackerley, </FONT><I><FONT size=2 face="serif">Vice
    President</FONT></I>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT face="serif">Independent Registered Public Accounting
    Firm</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Kevin M. Klingert, </FONT><I><FONT size=2 face="serif">Vice
    President</FONT></I>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Deloitte &amp; Touche
    LLP</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Richard M. Shea, </FONT><I><FONT size=2 face="serif">Vice
        President/Tax</FONT></I>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">200 Berkeley Street</FONT>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">James Kong, </FONT><I><FONT size=2 face="serif">Assistant
        Treasurer</FONT></I>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Boston, MA 02116</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Vincent B. Tritto, </FONT><I><FONT size=2 face="serif">Secretary</FONT></I>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

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

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Brian P. Kindelan, </FONT><I><FONT size=2 face="serif">Assistant
        Secretary</FONT></I>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT face="serif">Legal Counsel</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Skadden, Arps,
            Slate, Meagher &amp; Flom LLP</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left> <FONT face="serif">Investment Advisor</FONT>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Four Times Square</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">BlackRock Advisors,
      Inc.</FONT>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">New York, NY 10036</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">100 Bellevue
      Parkway</FONT>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Wilmington, DE
      19809</FONT>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT face="serif">Legal Counsel &#150; Independent Trustees</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">(800) 227-7BFM</FONT>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Debevoise &amp; Plimpton
            LLP</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">919 Third Avenue</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left> <FONT face="serif">Sub-Advisor</FONT><SUP><FONT face="serif">2</FONT></SUP>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">New York, NY 10022</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">BlackRock Financial
      Management, Inc.</FONT>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">40 East 52nd
      Street</FONT>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> &nbsp; &nbsp;<FONT size=2 face="serif">This report is for shareholder
            information. This is not a prospec-</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">New York, NY
      10022</FONT>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">tus intended for use in the
          purchase or sale of Trust shares.</FONT>&nbsp; </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Statements and other information
          contained in this report are as</FONT>&nbsp; </div></TD>
</TR>
<TR valign="bottom">
  <TD align=left> <FONT face="serif">Custodian</FONT>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">dated and are subject to change.</FONT>&nbsp; </div></TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">State Street
      Bank and Trust Company</FONT>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">225 Franklin
      Street</FONT>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">BlackRock Closed-End Funds</FONT>&nbsp; </TD>
</TR>
<TR>
  <TD align=left valign="bottom"> &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Boston,
      MA 02110</FONT>&nbsp; </TD>
        <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left valign="bottom"> <FONT size=2 face="serif">c/o BlackRock Advisors,
        Inc.</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">100 Bellevue Parkway</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">Wilmington, DE 19809</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD> <FONT size=2 face="serif">(800)</FONT> <FONT size=2 face="serif">227-7BFM</FONT>&nbsp; </TD>
</TR>
</TABLE>
<BR>
<hr align="left" width="140" size="1">

<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
        <TD nowrap valign=top>
<FONT size=1 face="serif">1</FONT>&nbsp; &nbsp; &nbsp;  </TD>
        <TD>
<FONT size=1 face="serif">Appointed on January 19, 2005 as an Advisory Trustee.</FONT>  </TD>
</TR>
<TR>
        <TD nowrap valign=top>
<FONT size=1 face="serif">2</FONT>&nbsp; &nbsp; &nbsp;  </TD>
        <TD>
<FONT size=1 face="serif">For the Income II Trusts.</FONT>      </TD>
</TR>
<TR>
        <TD nowrap valign=top>
<FONT size=1 face="serif">3</FONT>&nbsp; &nbsp; &nbsp;  </TD>
        <TD>
<FONT size=1 face="serif">For the Income II Trusts.</FONT>      </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called
&#147;householding&#148; and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the
mailing of these documents to be combined with those for other members of your household, please contact the Trusts at (800) 699-1BFM.</FONT></P>
<P>
<FONT size=2 face="serif">The Trusts have delegated to the Advisor the voting of proxies relating to their voting securities pursuant to the Advisor&#146;s proxy voting policies and procedures. You may obtain a copy of these proxy voting policies
and procedures, without charge, by calling (800) 699-1BFM. These policies and procedures are also available on the website of the Securities and Exchange Commission (the &#147;Commission&#148;) at http://www.sec.gov.</FONT></P>
<P>
<FONT size=2 face="serif">Information on how proxies relating to the Trusts&#146; voting securities were voted (if any) by the Advisor during the most recent 12-month period ended December 31st is available, upon request, by calling (800) 699-1BFM
or on the website of the Commission at http://www.sec.gov.</FONT></P>
<P>
<FONT size=2 face="serif">The Trusts file their complete schedule of portfolio holdings for the first and third quarters of their respective fiscal years with the Commission on Form N-Q. Each Trust&#146;s Form N-Q will be available on the
Commission&#146;s website at http://www.sec.gov. Each Trust&#146;s Form N-Q, when available, may be reviewed and copied at the Commission&#146;s Public Reference Room in Washington, D.C. Information regarding the operation of the Public Reference
Room may be obtained by calling 1-800-SEC-0330. Each Trust&#146;s Form N-Q, when available, may also be obtained, upon request, by calling (800) 699-1BFM.</FONT></P>

<HR noshade  width="100%" size=4>
<p align="left" style="page-break-before:always"></p>
<page>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="bottom">
    <td nowrap><FONT size=1 face="sans-serif">This report is for shareholder information.
        This is not a prospectus intended</FONT><BR>
      <FONT size=1 face="sans-serif">for use in the purchase or sale of Trust
      shares. Statements and other</FONT><BR>
      <FONT size=1 face="sans-serif">information contained in this report are
      as dated and are subject to change.</FONT><br>      <BR>
      <FONT size=1 face="sans-serif">CEF-SEMI-1</FONT></td>
    <td><div align="right"><img src="c36072_covx2x1.jpg" width="229" height="77"></div></td>
  </tr>
</table>
<HR noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P>
<PAGE>
<P>
<B><FONT face="serif">Item 2. Code of Ethics.</FONT></B><FONT face="serif"> <br>
</FONT><FONT face="serif">Not applicable for semi-annual reports. </FONT></P>
<P>
<B><FONT face="serif">Item 3. Audit Committee Financial Expert.</FONT></B><FONT face="serif"> <br>
Not applicable for semi-annual reports. </FONT></P>
<P>
<B><FONT face="serif">Item 4. Principal Accountant Fees and Services. <br>
</FONT></B><FONT face="serif">Not applicable for semi-annual reports. </FONT></P>
<P>
<B><FONT face="serif">Item 5. Audit Committee of Listed Registrants.</FONT></B><FONT face="serif"> <br>
Not applicable for semi-annual reports. </FONT></P>
<P>
<B><FONT face="serif">Item 6. Schedule of Investments. <br>
</FONT></B><FONT face="serif">The
Registrant&#146;s Schedule of Investments is included as part of the Report to
Shareholders filed under Item 1 of this Form. </FONT></P>
<P>
<B><FONT face="serif">Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. <br>
</FONT></B><FONT face="serif">Not applicable for semi-annual reports. </FONT></P>
<P>
<B><FONT face="serif">Item 8. Portfolio Managers of Closed-End Management Investment Companies. <br>
</FONT></B><FONT face="serif">Not applicable for semi-annual reports. </FONT></P>
<P>
<B><FONT face="serif">Item 9. Purchases of Equity Securities by Closed-End Management Company and Affiliated Purchasers. <br>
</FONT></B><FONT face="serif">Not applicable because no such purchases were made during the period covered by this report. </FONT></P>
<P>
<B><FONT face="serif">Item 10. Submission of Matters to a Vote of Security Holders. <br>
</FONT></B><FONT face="serif">Not applicable because no applicable matters were voted on by shareholders during the period covered by this report. </FONT></P>
<P>
<B><FONT face="serif">Item 11. Controls and Procedures.</FONT></B><FONT face="serif"> <br>
</FONT><FONT face="serif">(a)
The Registrant's principal executive officer and principal financial officer
have evaluated the Registrant's disclosure controls and procedures as of a date
within 90 days of this filing and have concluded that the Registrant&#146;s disclosure
controls and procedures are effective, as of such date, in ensuring that information
required to be disclosed by the Registrant in this Form N-CSR was recorded, processed,
summarized, and reported timely. </FONT></P>
<P>
<FONT face="serif">(b) The Registrant's principal executive officer and principal financial officer are aware of no changes in the Registrant's internal control over financial reporting that occurred </FONT></P>

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

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


<P>
<FONT face="serif">during the Registrant's last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. </FONT></P>
<P>
<B><FONT face="serif">Item 12. Exhibits.</FONT></B><FONT face="serif"> </FONT></P>
<P>
<FONT face="serif">(a) (1) Not applicable. </FONT></P>
<P>
<FONT face="serif">(a) (2) Separate certifications of Principal Executive and Financial Officers pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. </FONT></P>
<P>
<FONT face="serif">(a) (3) Not applicable. </FONT></P>
<P>
<FONT face="serif">(b) Certification of Principal Executive and Financial Officers pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. </FONT></P>
<P align="center">
<FONT face="serif">2 </FONT></P>

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<P align="center">
<B><FONT face="serif">SIGNATURES</FONT></B><FONT face="serif"> </FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
</FONT></P>
<P>
<FONT face="serif">(Registrant) <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BlackRock Insured
Municipal Income Trust&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><BR> </FONT></P>
<P>
<FONT face="serif">By: <U>/s/ Henry Gabbay</U>_______________________________________________________<BR>
Name: Henry Gabbay <br>
Title: Treasurer <br>
Date: April 27, 2005</FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates
indicated. </FONT></P>
<P>
<FONT face="serif">By: <U>/s/ Robert S. Kapito</U>_____________________________________________________<BR>
Name: Robert S. Kapito <br>
Title: Principal Executive Officer <br>
Date: April 27, 2005</FONT></P>
<P>
<FONT face="serif">By: <U>/s/ Henry Gabbay</U>_______________________________________________________<BR>
Name: Henry Gabbay <br>
Title: Principal Financial Officer <br>
Date: April 27, 2005</FONT></P>
<P align="center">
<FONT face="serif">3 </FONT></P>

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<DOCUMENT>
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<P><B><FONT face="serif">EX-99.CERT </FONT></B></P>
<P> <B><FONT face="serif">CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER </FONT></B></P>
<P> <B><U><FONT face="serif">CERTIFICATIONS</FONT></U></B><B><FONT face="serif"> </FONT></B></P>
<P> <FONT face="serif">I, Robert Kapito, certify that: </FONT></P>
<P> <FONT face="serif">1. I have reviewed this report on Form N-CSR of BlackRock
    Insured Municipal Income Trust; </FONT></P>
<P> <FONT face="serif">2. Based on my knowledge, this report does not contain
    any untrue statement of a material fact or omit to state a material fact
    necessary to make the statements made, in light of the circumstances under
    which such statements were made, not misleading with respect to the period
    covered by this report; </FONT></P>
<P> <FONT face="serif">3. Based on my knowledge, the financial statements, and
    other financial information included in this report, fairly present in all
    material respects the financial condition, results of operations, changes
    in net assets, and cash flows (if the financial statements are required to
    include a statement of cash flows) of the registrant as of, and for, the
    periods presented in this report; </FONT></P>
<P> <FONT face="serif">4. The registrant's other certifying officer(s) and I
    are responsible for establishing and maintaining disclosure controls and
    procedures (as defined in Rule 30a-3(c) under the Investment Company Act
    of 1940) and internal control over financial reporting (as defined in Rule
    30a-3(d) under the Investment Company Act of 1940) for the registrant and
    have: </FONT></P>
<P> <FONT face="serif">a) Designed such disclosure controls and procedures, or
    caused such disclosure controls and procedures to be designed under our supervision,
    to ensure that material information relating to the registrant, including
    its consolidated subsidiaries, is made known to us by others within those
    entities, particularly during the period in which this report is being prepared; </FONT></P>
<P> <FONT face="serif">b) Designed such internal control over financial reporting,
    or caused such internal control over financial reporting to be designed under
    our supervision, to provide reasonable assurance regarding the reliability
    of financial reporting and the preparation of financial statements for external
    purposes in accordance with generally accepted accounting principles; </FONT></P>
<P> <FONT face="serif">c) Evaluated the effectiveness of the registrant's disclosure
    controls and procedures and presented in this report our conclusions about
    the effectiveness of the disclosure controls and procedures, as of a date
    within 90 days prior to the filing date of this report based on such evaluation;
    and</FONT><FONT size=2 face="sans-serif"> </FONT></P>
<p></p><FONT face="serif">d) Disclosed in this report any change in the registrant's
    internal control over financial reporting that occurred during the registrant&#146;s
    second fiscal quarter of the period covered by this report that has materially
    affected, or is reasonably likely to materially affect, the registrant's
    internal control over financial reporting; and </FONT><p></P>
<P> <FONT face="serif">5. The registrant's other certifying officer(s) and I
    have disclosed to the registrant's auditors and the audit committee of the
    registrant's board of directors (or persons performing the equivalent functions): </FONT></P>
<P> <FONT face="serif">a) All significant deficiencies and material weaknesses
    in the design or operation of internal controls over financial reporting
    which are reasonably likely to adversely affect the registrant's ability
    to record, process, summarize, and report financial information; and </FONT></P>
<P> <FONT face="serif">b) Any fraud, whether or not material, that involves management
    or other employees who have a significant role in the registrant's internal
    controls. </FONT></P>
<P> <FONT face="serif">Date: April 27, 2005<BR>
</FONT></P>
<div align="right"><FONT face="serif">___<U>/s/ Robert S. Kapito</U>___<br>
  Robert S. Kapito&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><BR>
  <FONT face="serif">Principal Executive Officer </FONT><BR>
</div>
<P align="center">&nbsp; </P>
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<PAGE>
<P> <B><FONT face="serif">EX-99.CERT </FONT></B></P>
<P> <B><FONT face="serif">CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER </FONT></B></P>
<P> <B><U><FONT face="serif">CERTIFICATIONS</FONT></U></B><B><FONT face="serif"> </FONT></B></P>
<P> <FONT face="serif">I, Henry Gabbay, certify that: </FONT></P>
<P> <FONT face="serif">1. I have reviewed this report on Form N-CSR of BlackRock
    Insured Municipal Income Trust; </FONT></P>
<P> <FONT face="serif">2. Based on my knowledge, this report does not contain
    any untrue statement of a material fact or omit to state a material fact
    necessary to make the statements made, in light of the circumstances under
    which such statements were made, not misleading with respect to the period
    covered by this report; </FONT></P>
<P> <FONT face="serif">3. Based on my knowledge, the financial statements, and
    other financial information included in this report, fairly present in all
    material respects the financial condition, results of operations, changes
    in net assets, and cash flows (if the financial statements are required to
    include a statement of cash flows) of the registrant as of, and for, the
    periods presented in this report; </FONT></P>
<P> <FONT face="serif">4. The registrant's other certifying officer(s) and I
    are responsible for establishing and maintaining disclosure controls and
    procedures (as defined in Rule 30a-3(c) under the Investment Company Act
    of 1940) and internal control over financial reporting (as defined in Rule
    30a-3(d) under the Investment Company Act of 1940) for the registrant and
    have: </FONT></P>
<P> <FONT face="serif">a) Designed such disclosure controls and procedures, or
    caused such disclosure controls and procedures to be designed under our supervision,
    to ensure that material information relating to the registrant, including
    its consolidated subsidiaries, is made known to us by others within those
    entities, particularly during the period in which this report is being prepared; </FONT></P>
<P> <FONT face="serif">b) Designed such internal control over financial reporting,
    or caused such internal control over financial reporting to be designed under
    our supervision, to provide reasonable assurance regarding the reliability
    of financial reporting and the preparation of financial statements for external
    purposes in accordance with generally accepted accounting principles; </FONT></P>
<P> <FONT face="serif">c) Evaluated the effectiveness of the registrant's disclosure
    controls and procedures and presented in this report our conclusions about
    the effectiveness of the disclosure controls and procedures, as of a date
    within 90 days prior to the filing date of this report based on such evaluation;
    and</FONT><FONT size=2 face="sans-serif"> </FONT></P>
<P> <FONT face="serif">d) Disclosed in this report any change in the registrant's
    internal control over financial reporting that occurred during the registrant&#146;s
    second fiscal quarter of the period covered by this report that has materially
    affected, or is reasonably likely to materially affect, the registrant's
    internal control over financial reporting; and </FONT></P>
<P> <FONT face="serif">5. The registrant's other certifying officer(s) and I
    have disclosed to the registrant's auditors and the audit committee of the
    registrant's board of directors (or persons performing the equivalent functions): </FONT></P>
<P> <FONT face="serif">a) All significant deficiencies and material weaknesses
    in the design or operation of internal controls over financial reporting
    which are reasonably likely to adversely affect the registrant's ability
    to record, process, summarize, and report financial information; and </FONT></P>
<P> <FONT face="serif">b) Any fraud, whether or not material, that involves management
    or other employees who have a significant role in the registrant's internal
    controls. </FONT></P>
<P> <FONT face="serif">Date: April 27, 2005<BR>
</FONT></P>
<div align="right">
  <p><FONT face="serif">___<U>/s/ Henry Gabbay</U>___</FONT><BR>
    <FONT face="serif">Henry Gabbay&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><BR>
  <FONT face="serif">Principal Financial Officer </FONT></p>
  <p align="center"><BR>
    <BR>
  </p>
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<DOCUMENT>
<TYPE>EX-99.906CERT
<SEQUENCE>6
<FILENAME>c36072_ex99-906cert.htm
<TEXT>

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<P align="right">EX-99.906CERT</P>
<P><B><U><FONT face="serif">SECTION 906 CERTIFICATION</FONT></U></B><FONT face="serif"> </FONT></P>
<P align="justify"> <FONT face="serif">Pursuant to 18 U.S.C. &sect; 1350, the undersigned officers
    of BlackRock Insured Municipal Income Trust (the "Company"), hereby certifies,
    to the best of their knowledge, that the Company's Report on Form N-CSR for
    the period ended February 28, 2005, (the "Report") fully complies with the
    requirements of Section 13(a) or 15(d), as applicable, of the Securities
    Exchange Act of 1934 and that the information contained in the Report fairly
    presents, in all material respects, the financial condition and results of
    operations of the Company. </FONT></P>
<P> <FONT face="serif">Dated: April 27, 2005 </FONT></P>
<P>&nbsp;</P>
<p><FONT face="serif">__<U>/s/ Robert S. Kapito</U>__________<br>
  Name: Robert S. Kapito </FONT><BR>
<FONT face="serif">Title: Principal Executive Officer</FONT></p>
<p><BR>
  <FONT face="serif">__<U>/s/ Henry Gabbay</U>____________<br>
  Name: Henry Gabbay </FONT><BR>
  <FONT face="serif">Title: Principal Financial Officer </FONT><BR>
</p>
<P align="center">&nbsp; </P>
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